Ohio Administrative Code
Title 145 - Public Employees Retirement System
Chapter 145-1 - Benefits
Section 145-1-38 - Purchase of service credit by payroll deduction
Universal Citation: OH Admin Code 145-1-38
Current through all regulations passed and filed through September 16, 2024
(A)
(1) A
member of the public employees retirement system who is participating in the
traditional pension plan may purchase service credit by post-tax payroll
deduction, pursuant to this rule, rule
145-2-18
of the Administrative Code, section
145.20,
145.201,
145.28,
145.291,
145.292,
145.293,
145.301,
145.302, or
145.31, of the Revised Code, or
former section 145.295 or
145.2911 of the Revised Code as
they existed prior to January 7, 2013.
(2) A member who is participating in the
combined plan may purchase service credit by post-tax payroll deduction
pursuant to this rule, rule
145-3-40
of the Administrative Code, section
145.20,
145.201,
145.291,
145.292,
145.293, or
145.302 of the Revised Code,
former section 145.295 or
145.2911 of the Revised Code as
it existed prior to January 7, 2013, or section
3.11 or
3.12 of the combined plan
document.
(3) Under a plan that is
in compliance with Internal Revenue Code section 414(h)(2), a member may
complete a purchase of service credit by pre-tax 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 as permitted by
paragraph (E)(2) of this rule.
(4)
A member may purchase service credit in any combination of lump sum payment,
partial payment, or post-tax payroll deductions.
(B)
(1)
Upon a member's request for purchase of service credit by post-tax payroll
deduction the retirement system shall prepare a service
purchase payment option form that is in compliance with rule
145-1-35 of the
Administrative Code and states all of the following:
(a) The service to be purchased;
(b) The total cost of the service credit to
be purchased;
(c) Alternate plans
of monthly payments.
(2)
The member shall complete such
service purchase payment
option form by marking a plan of payment, stating
the amount of service to be purchased, signing the
form, and returning the form to the retirement system.
The form shall be post-marked prior to the last date
listed on the form.
(3) A
separate
service purchase payment option form shall be
completed for each separate type of service credit.
(C)
(1)
After receipt of the member's
service purchase payment
option form, the retirement system shall notify the member's employer
that payroll deductions shall begin within sixty days.
(2) The employer shall report at least
monthly 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 provided in
paragraph (E)(2) of this rule, 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;
(c) Upon termination of participation in the
plan under which the payroll deduction commenced.
(3) Except as provided in paragraph (E)(2) of
this rule, 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.
(E) The retirement system shall accept new elections to purchase service credit by pre-tax payroll deduction, as described in paragraph (A)(3) of this rule, only if such election is received by the retirement system or post-marked on or before December 31, 2011.
(1) A member who, on December 31, 2011, is
purchasing service credit through a pretax deduction agreement may make an
irrevocable election, on a form provided by the retirement system and received
by the retirement system not later than March 31, 2012, to have the deduction
agreement terminated. The member may purchase the balance of the service credit
by any other method permitted by the retirement system.
(2) A member who does not elect to terminate
the pre-tax deduction agreement shall continue under the agreement for the
duration of the purchase period. A member who is purchasing service credit
under a pre-tax deduction agreement may not purchase the period of service
subject to the agreement through any other method while the agreement is in
effect. The member and employer shall not:
(a)
Decrease or increase such payroll deduction;
(b) Terminate such payroll deduction unless
the member has terminated employment, terminated participation in the plan
under which the payroll deduction commenced, is reported by the employer as
laid off for at least six consecutive months, or all of such service credit has
been purchased by such payroll deduction; or
(c) Make a partial payment as defined in rule
145-1-35 of the
Administrative Code.
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