Ohio Admin. Code 742-5-07 - Service credit purchases and transfers
(A) For purposes of sections
742.21 and
742.251 of the Revised Code, a
"purchase" shall mean that the Ohio police and fire pension fund ("OP&F")
member withdrew his/her contributions from the applicable retirement system or
out-of-state or local government and a "transfer" shall mean that the OP&F
member maintained his/her contributions with the applicable retirement
system.
(B) For purposes of
divisions (B) and (C) of section
742.21 of the Revised Code,
"amount withdrawn" shall mean contributions paid by the member to the
applicable retirement system for service credit, which are later withdrawn from
that retirement system by the member, but shall not include interest paid to
the member on such contributions by the withdrawing retirement system. In no
event, however, shall this definition impact OP&F's right to the payment of
interest according to that section the Revised Code.
(C) For purposes of determining whether an
OP&F member is not receiving a pension or benefit payment, as outlined in
sections 742.21 and
742.251 of the Revised Code,
OP&F will rely upon its books and records.
(D) For purposes of determining "full-time
service," OP&F shall request the employer and the member to certify the
full-time service, but in any event, OP&F will determine that the
contributing credit was for "full-time service." In order for the service to be
"fulltime", as provided for in divisions (A) and (B) of section
742.01 of the Revised Code:
(1) the service credit to be purchased or
transferred must have been rendered while employed in a full-time public
position; and
(2) the individual
must meet the criteria for "full-time contributing service," as outlined in
rule
742-5-03
of the Administrative Code. As a result, any pay
period in which
OP&F will prorate service
credit for a member if the overall service is determined by OP&F to be
full-time for occasions when the member failed to
work
be
compensated the equivalent of thirty-seven and
one half or more
minimum number of hours
per week as set forth in paragraph (A)(2) of rule
742-5-03
of the Administrative Code
does not qualify as
"full-time" and, in such event, OP&F will pro-rate such
credit.
(E) As
required by section 742.21 of the Revised Code, in
no event can credit be purchased or directly transferred for employment in a
part-time position. For purposes of meeting the definition of "full-time
service" in section 742.21 of the Revised Code and
this rule, periods of service in part-time positions cannot be combined to
equal "full-time service."
(F)
Credit may not be purchased or directly transferred for periods of employment
concurrent with any employment for which the member has already received
OP&F service credit.
(G)
Subject to the other provisions of this rule, an OP&F member who is not
receiving a pension or benefit payment from OP&F may purchase qualifying
service credit for periods of full-time service in a full-time public position
as a member of a state or municipal retirement system in the state of Ohio,
provided that such service credit has been canceled by the system in which it
was earned.
(H) Subject to the
provisions of section
742.251 of the Revised Code and
the other provisions of this rule, an OP&F member who is not receiving a
pension or benefit payment from OP&F may purchase qualifying service credit
for periods of full-time service in a full-time public position as an employee
of an entity of an out-of-state or local government, or of an entity of the
United States government, provided that such service credit is not used in the
calculation of any public or private retirement benefit, other than federal
social security benefits.
A member who chooses to purchase service credit under this paragraph rather than transferring the qualifying service credit under paragraph (I) of this rule is entitled to be granted service credit for periods of active duty military service, as provided for in section 742.521 of the Revised Code.
(I) To initiate the
transfer of eligible service credit to OP&F under section
742.21 of the Revised Code, the
member shall initiate the request with the transferring retirement system.
Within a reasonable time from OP&F's receipt of the ledger of contributions
and the employer address from the transferring system, OP&F will send a
transfer packet to the member containing a certification to be completed and
signed by the member and a certification to be completed by the employer where
the service credit that is being transferred was earned. The certification
forms should be returned together to OP&F. Upon receipt of this
information, OP&F will then review the certifications and ledger
information and notify the transferring system of the eligible service credit
that should be transferred pursuant to section
742.21 of the Revised Code. In
the event that the transferring system transfers monies to OP&F without
OP&F's review and approval, OP&F reserves the right to reject service
credit that does not meet the criteria for "full-time," as outlined in this
rule.
(J) To initiate the purchase
of eligible service credit from OP&F, the member shall notify OP&F to
request a cost to purchase the service credit. Within a reasonable time period
of such notice, OP&F will send the member a purchase packet containing a
certification to be completed and signed by the member and a certification to
be completed by the member's employer(s) where the purchasable service credit
was earned. The certification forms should be returned together to OP&F.
Notwithstanding these certifications, OP&F will review the documentation
and determine if the service is "full-time," as required by section
742.21 of the Revised Code, and
as more fully outlined in this rule. Once OP&F determines the service
credit meets the statutory and administrative requirements, OP&F will
provide the eligible member with a cost statement. Once the member purchases
the service credit, OP&F will bill the former system for monies associated
with the purchase, as required by section
742.21 of the Revised Code. In
the event that the former system pays the monies to OP&F without OP&F's
review and approval, OP&F reserves the right to reject service credit that
does not meet the criteria for "full-time," as outlined in this rule.
(K) For purposes of division (K) of section
742.21 of the Revised Code,
purchased service credit not only includes purchased service credit, but it
shall also include service credit transferred by the Cincinnati retirement
system, a non-uniform retirement system, or the other uniform retirement system
to OP&F.
(L) The interest rate
charged for the purchase of civilian service credit shall be the actuarial
interest assumption adopted by the board.
Notes
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.21, 742.251
Prior Effective Dates: 07/24/1986 (Emer.), 10/16/1986, 07/17/1993, 08/05/1996, 02/22/2002, 11/03/2003, 01/16/2014, 03/03/2019, 06/23/2020 (Emer.), 09/11/2020
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.21, 742.251
Prior Effective Dates: 07/24/1986 (Emer.), 10/16/1986, 07/17/1993, 08/05/1996, 02/22/2002, 11/03/2003, 01/16/2014, 03/03/2019
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