As Introduced
132nd General Assembly
Regular Session H. B. No. 413
2017-2018
Representative Scherer
A BILL
To amend section 145.323 and to enact sections 145.018 and 145.321 of the Revised Code regarding Public Employees Retirement System (PERS) annual cost-of-living adjustments granted to allowance and benefit recipients and PERS service credit for services as a nonteaching school employee of a county board of developmental disabilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 145.323 be amended and sections 145.018 and 145.321 of the Revised Code be enacted to read as follows:
Sec. 145.018. Notwithstanding section 145.016 of the Revised Code, the public employees retirement board shall grant a full year of service credit to a member of the retirement system if all of the following conditions are met:
(A) The member is employed by a county board of developmental disabilities.
(B) The member's employment is in a position that would be covered by Chapter 3309. of the Revised Code if the member was employed by a public employer as defined in section 3309.01 of the Revised Code.
(C) The member performs full-time services in the position for at least nine months of the year and is paid earnable salary in each month of that year.
Sec. 145.321. (A) As used in this section, "benefit" means any annual allowance, pension, or benefit being paid under section 145.33, 145.332, 145.36, 145.37, 145.45, or 145.46 of the Revised Code, regardless of the section under which the benefit was granted and any increases paid pursuant to section 145.323 of the Revised Code. "Benefit" does not include any amounts payable by reason of deposits to the employees' savings fund under section 145.62 of the Revised Code.
(B) Effective January 1, 2019, the public employees retirement board shall increase a benefit payable to each person eligible to receive a benefit that was effective on or before December 31, 1980. The amount of the increase shall be determined by multiplying the benefit for which the person was eligible on December 31, 2018, by the following percentages as determined by the calendar year in which the benefit was effective:
Calendar Year Percentage of
Effective Increase
1969 and earlier 0.0
1970 7.0
1971 5.7
1972 1.7
1973 2.5
1974 7.0
1975 6.2
1976 6.6
1977 6.6
1978 7.4
1979 8.8
1980 5.7
(C) The increase made under this section shall be included in calculating any increases made pursuant to section 145.323 of the Revised Code.
Sec. 145.323. (A) Except as otherwise provided in this section, the public employees retirement board shall annually increase each allowance, pension, or benefit payable under this chapter.
Until
the
last day of December
of
the fifth full calendar year after the effective date of this
amendment31,
2018,
the increase shall be three per cent. For each succeeding calendar
year, the increase shall be as follows:
(1)
For
In
calendar years 2019 and 2020, for
each
allowance, pension, or benefit
payable under section 145.33 or 145.332 of the Revised Code that was
granted
in calendar year 2010, 2011, or 2012, and
not later than the
effective date of this amendment
January 7, 2013,
the
increase shall be three
per cent;.
Thereafter, the increase shall be the increase specified in division
(A)(2) of this section.
(2)
For each allowance, pension, or benefit
granted on or after the effective date of this amendment
other than those described in division (A)(1) of this section,
the increase shall be
the percentage increase in the consumer price index, not exceeding
three
two
and one-half
per
cent, as determined by the United States bureau of labor statistics
(U.S. city average for urban wage earners and clerical workers: "all
items 1982-84=100") for the twelve-month period ending on the
thirtieth day of June of the immediately preceding calendar year. If
the consumer price index for that period did not increase, no
increase shall be made under division (A)(2) of this section.
The board may increase the percentage specified in division (A)(2) of
this section, not exceeding three per cent, if the conditions
specified in division (D) of this section are met.
No allowance, pension, or benefit shall exceed the limit established by section 415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 415, as amended.
(B) The first increase is payable to all persons becoming eligible as follows:
(1) For an allowance, pension, or benefit that is effective after June 30, 1971, but before January 1, 2019, upon such persons receiving an allowance, pension, or benefit for twelve months;
(2) For an allowance, pension, or benefit that is effective on or after January 1, 2019, upon such persons receiving an allowance, pension, or benefit for twenty-four months.
The increased amount is payable for the ensuing twelve-month period or until the next increase is granted under this section, whichever is later. Subsequent increases shall be determined from the date of the first increase paid to the former member in the case of an allowance being paid a beneficiary under an option, or from the date of the first increase to the survivor first receiving an allowance or benefit in the case of an allowance or benefit being paid to the subsequent survivors of the former member.
The date of the first increase under this section becomes the anniversary date for any future increases.
The allowance, pension, or benefit used in the first calculation of an increase under this section shall remain as the base for all future increases, unless a new base is established.
(B)
(C)
If
payment of a portion of a benefit is made to an alternate payee under
section 145.571 of the Revised Code, increases under this section
granted while the order is in effect shall be apportioned between the
alternate payee and the benefit recipient in the same proportion that
the amount being paid to the alternate payee bears to the amount paid
to the benefit recipient.
If payment of a portion of a benefit is made to one or more beneficiaries under a multiple-life plan under section 145.46 of the Revised Code, each increase under this section granted while the plan of payment is in effect shall be divided among the designated beneficiaries in accordance with the portion each beneficiary has been allocated.
(C)
(D)
The board may increase the percentage granted under
division (A)(2) of this section if both of the following apply:
(1) The percentage increase in the consumer price index under that division equals or exceeds three per cent for a period of three consecutive years immediately preceding the year of the increase;
(2) Based on the retirement system's most recent annual actuarial valuation required by section 145.22 of the Revised Code, the ratio of the system's assets to its liabilities exceeds one hundred per cent.
(E) If in any year the period necessary to amortize the retirement system's unfunded actuarial accrued pension liability equals or exceeds thirty years, as determined by the annual actuarial valuation required by section 145.22 of the Revised Code, no increase shall be granted under this section in any succeeding calendar year until the amortization period is less than thirty years.
(F) The board shall make all rules necessary to carry out this section.
Section 2. That existing section 145.323 of the Revised Code is hereby repealed.