145-1-31 Payment for periods of noncontributing service.

 

 

 

145-1-31                      Payment for periods of noncontributing service.

 

 

 

(A)This rule amplifies section 145.483 of the Revised Code.

 

(B)For purposes of this rule:

 

(1)"Exempt" means exempt from membership in the public employees retirement system pursuant to Chapter 145. of the Revised Code as effective during the period of noncontributing service and for which there is a properly executed written exemption.

 

(2)"Excluded" means excluded from membership in the retirement system because Chapter 145. of the Revised Code specifically excludes a person, or the person is not a public employee.

 

(3)"Noncontributing service" means a period of employment or service for which employee contributions pursuant to section 145.47 of the Revised Code were due, but not deducted by an employer, because the service was neither exempt nor excluded.

 

(4) "Properly executed written exemption" means:

 

(a) For employment which began before November 20, 1973 an exemption form provided by the retirement system which was signed by both the employee and employer and received by the retirement system within one month from the date employment began.

 

(b) For employment beginning on or after November 20, 1973 an exemption form provided by the retirement system which was signed by both the employee and employer, received by the retirement system within one month from the date employment began, and approved by the retirement system.

 

(C)An employer that failed to deduct employee contributions from a public employee during a period of employment, after January 1, 1935 for state employees or after July 1, 1938 for all other employees, for which employee contributions were required shall certify the earnable salary for such noncontributing service period on a form provided by the retirement system. This certification must be based on records available to the employer.

 

(D)

 

(1)After receipt of the employer's certification the retirement system shall prepare an employer billing statement for employee and employer contributions, and interest for the period of noncontributing service.

 

(2)Interest shall be calculated through the end of the year preceding the date of the employer billing statement.

 

 

(3) The amount of employee contributions shall be calculated using the employee contribution rate, earnable salary and maximum contribution limits in effect during the period of noncontributing service.

(4) The amount of employer contributions shall be calculated using the employer contribution rate in effect during the period of noncontributing service.

(5) The  employer  is  liable  for  the  total  amount  due  in  the  employer  billing statement.

(6) If the amount contained in the employer billing statement is not paid it will be added to the employer's quarterly billing statement.

(E)

(1) An employer shall not be billed for a period of noncontributing service which occurred before a period of contributing service for which a member received a refund of the member's accumulated contributions, pursuant to section 145.40 of the Revised Code, until the member has made a redeposit of the refund, pursuant to section 145.31 of the Revised Code.

(2) The following applies when an employee who is or was exempt from membership pursuant to section 145.03 of the Revised Code with a public employer also has noncontributing service and is an employee with the same public employer.

(a) Absent a written exemption the period of noncontributing service shall be billed to the employer pursuant to section 145.483 of the Revised Code and this rule.

(b) An employer shall not be billed for periods of exempt service which are subsequent to a period of noncontributing service unless the subsequent period of exempt service begins within three months from the last date of compensation for the noncontributing service.

(3) The following applies when an employee who is or was exempt from membership pursuant to section 145.03 of the Revised Code with one public employer also has noncontributing service and is an employee with another public employer.

(a) The retirement system shall notify the employer with which the employee is exempt to begin contributions, pursuant to sections 145.47 and 145.48 of the Revised Code, with the current payroll period.

(b) The  retirement  system  shall  bill  the  other  employer  with  which  the employee has noncontributing service pursuant to this rule.

(4) A member who has service which was exempt and not billed to an employer, may purchase such exempt service pursuant to section 145.28 of the Revised Code and PERS rules.

(F) Except as provided in paragraph (F)(4) of this rule:

(1) Employee contributions paid by the employer pursuant to section 145.483 of the Revised Code and this rule shall be held in the employers' accumulation fund as defined in division (B) of section 145.23 of the Revised Code.

(2) Employee contributions paid by the employer, pursuant to section 145.483 of the Revised Code and this rule, shall be refunded to such employer in the event the member receives a refund of the member's accumulated contributions pursuant to section 145.40 of the Revised Code or a distribution under article VIII of the combined plan document. Amounts paid for employer contributions, interest or other fees, pursuant to section 145.483 of the Revised Code, shall remain with the retirement system.

(3) The employer which received employee contributions, pursuant to paragraph (F)(2) of this rule, shall be liable for a return of such employee contributions if the employee again becomes a member of the retirement system and either makes a redeposit pursuant to section 145.31 of the Revised Code or rule 145-3-22 of the Administrative Code. The retirement system shall bill the employer for the employee contributions plus interest calculated from the date of the refund through the end of the year preceding the date of the statement.

(4)

(a) For members participating in the member-directed plan, employee contributions paid by the employer pursuant to section 145.483 and this rule shall be held in the member#s employer contribution account, as defined in section 1.19 of the member-directed plan document. The total amount paid by an employer pursuant to section 145.483 of the Revised Code shall vest in accordance with section 7.02 of the member-directed plan document.

(b) The non-vested portion of the employee contributions described in paragraph (F)(4)(a) of this rule shall be refunded to the employer in the event the member receives a distribution under article VIII of the member-directed plan document. The non-vested portion of the amounts paid for employer contributions, interest or other fees, pursuant to section 145.483 of the Revised Code, shall be transferred to a separate account in the defined contribution fund, as described in article VII of the member-directed plan document.

Replaces:	145-9-03.
Effective:	01/01/2003
R.C. 119.032 review dates:	09/29/2005

CERTIFIED ELECTRONICALLY

Certification

12/20/2002

Date

Promulgated Under:   111.15

Statutory Authority:   145.09.

Rule Amplifies:           145.47, 145.48, 145.483,

145.491.

Prior Effective Dates: 11/2/00, 5/3/97, 10/4/93,

11/2/91, 12/20/72.