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 which 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) The retirement system shall not accept a service purchase by payroll deduction for more than one type of service credit at the same time, nor for service credit which is being purchased by a lump sum payment as defined in rule 145-1-35 of the Administrative Code. Except as prohibited in this rule, the retirement system may accept a partial payment as defined in rule 145-1-35 of the Administrative Code only if such payment is made with a rollover distribution as authorized by rule 145-1-37 of the Administrative Code 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 which shall be the greater of fifty dollars per month or the current month's interest.

(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 and/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)    Except as prohibited in this paragraph, a A member may increase or decrease the member's post-tax payroll deduction by written notice to the member's employer except in no event shall a deduction be decreased to less than fifty dollars per month or the current month's interest whichever is greater.

(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 and the retirement system;

(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. Except as prohibited in this paragraph, a

(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 issue a statement of cost 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 amount in the statement of cost balance due.

(4)(5)

(a)   Notwithstanding any provision in this rule, a member, who is purchasing credit pursuant to this rule with amounts designated by the employer as picked-up contributions under Internal Revenue Code section 414(h)(2), cannot described in paragraph (A)(1)(c) of this rule:

(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:                                                     07/01/2007

CERTIFIED ELECTRONICALLY

Certification

05/08/2007

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,

145.302, 145.31, 145.42, 145.81.

Prior Effective Dates:                         1/1/06; 1/1/03; 3/27/99; 2/1/97; 11/2/96; 12/3/90;

12/4/89.