145-2-18 Service credit for participation in combined plan or member-directed plan.

 

 

 

145-2-18                      Service    credit    for    participation     in    combined    plan    or member-directed plan.

 

 

 

(A)    This rule amplifies section 145.814 of the Revised Code and section 6.01 of the combined plan document and member-directed plan document.

 

(B)    For each member participating in the traditional pension plan who elects under division (C)(2) of section 145.814 of the Revised Code, the public employees retirement system shall prepare a statement of cost for service credit to be purchased in the traditional pension plan based on participation in the combined plan or member-directed plan, as appropriate, 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, if any.

 

(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 (C)(3)(a) 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 not later than one hundred eighty days after the effective date of an election to transfer participate in the traditional pension plan under section 2.03 of the combined plan document. Service credit purchased under this rule shall be included in the member's total service credit in the traditional pension plan but shall not be used in the calculation of a benefit under division (B)(2) of section 145.33 of the Revised Code.

 

(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 in the prior plan 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 service credit in the combined plan or years of participation in the member-directed plan, as applicable.

 

 

 

 

(2)      Service credit that is 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 transfer participate in the traditional pension plan under section 2.03 of the combined or member-directed plan document.

(F)     For each member described in paragraph (B) of this rule who transferred the member's accumulated contributions under section 145.191 of the Revised Code, the statement of cost shall include the cost to restore in the traditional pension plan the accumulated contributions and service credit cancelled under that section. The cost shall consist of the amount transferred, with interest on such amount, compounded annually at a rate to be determined by the public employees retirement board from the first day of the month of transfer to and including the month of redeposit. The amount redeposited shall be considered the accumulated contributions of the member and shall be credited in the same manner as a redeposit under section 145.31 of the Revised Code.

(G)    For each member described in paragraph (B) of this rule who purchased service credit under rule 145-3-21 of the Administrative Code, the statement of cost shall include, if applicable, the difference between the amount paid in the combined plan to purchase the service credit and the cost to purchase the service credit in the traditional pension plan. Pursuant to section 6.01 of the combined plan document, if the amount paid in the combined plan to purchase the service credit was less than the cost to purchase the service credit in the traditional pension plan, the member may elect to receive a pro-rated amount of service credit in the traditional pension plan or may make an additional payment equal to the difference in order to receive the full amount of service credit.

(H)     For purposes of service purchased in the combined plan under section 145.28, 145.299, 145.301, or 145.44 of the Revised Code, the twelve months of earnable salary used in calculating the cost of the service credit in the traditional pension plan shall be the same twelve months of earnable salary used in determining the cost of the service in the combined plan.

Effective:                                                     01/01/2010

R.C. 119.032 review dates:                         09/29/2011

CERTIFIED ELECTRONICALLY

Certification

12/02/2009

Date

Promulgated Under:                           111.15

Statutory Authority:                           145.80.

Rule Amplifies:                                  145.28, 145.299, 145.301, 145.44, 145.81, 145.814

Prior Effective Dates:                         1/1/03, 11/15/03, 1/1/09.