Ohio Admin. Code 742-7-15 - Delinquent employers payment plan
(A) For outstanding fines and penalties due
under sections 742.352 and/or
742.353 of the Revised Code,
OP&F shall offer a delinquent employer a payment plan if the employer meets
the following criteria:
(1) The employer has
no past due employee contributions; and
(2) The employer has satisfied any
pre-existing payment plan promissory note; and
(3) The employer meets one of the following
criteria:
(a) Employers on fiscal watch or
fiscal emergency, as defined by the auditor of state, and who have past due
contributions or have accrued reporting and/or pre-employment penalties and
interest; or
(b) Employers who have
accrued reporting and/or pre-employment penalties and interest which exceed the
dollar amount of past due employer contributions, which have been past due for
three or more quarters; or
(c)
Employers who are inactive and have past due employer contributions, penalties,
or interest; or
(d) Employers who
have employer contributions that are three or more quarters past due and have
no ability to pay (based on the financial formulas outlined below).
(i) Penalties and interest exceed twenty-five
per cent of general fund revenues; or
(ii) Penalties and interest exceed eighty per
cent of general fund ending fund balance; or
(iii) Penalties and interest exceed fifty per
cent of general fund receipt over expenditures.
(B) The offering of this plan of
payment by OP&F will precede any actions taken by OP&F to certify the
amount due from the employer in accordance with section
742.35 of the Revised Code.
(C) The plan of payment shall be
offered to the employers who meet the criteria outlined in paragraph (A) of
this rule in accordance with the following provisions:
(1) OP&F will review the eligibility of
certain employers who may be able to take advantage of a payment plan. OP&F
will notify those employers of the program and request that such employers
contact OP&F for additional information.
(2) For any inquiries received from
employers, OP&F will notify such employers of their eligibility to
participate in a payment plan.
(3)
OP&F shall designate a deadline by which the employer must elect to
participate in the payment plan and sign the required documentation and if the
employer fails to meet the deadlines, the payment plan will not be available to
the employers and penalties and interest will continue to accrue.
(4) The employer will have several payment
term options in order to permit the employer to choose the best option within
the employer's budget considerations, but in no event will the term exceed
fifteen years.
(5) The employer
must sign a promissory note and agreement that will require signature by the
designated authorities/officers of the municipality.
(6) As a condition to participating, the
employer must pay in full all past accumulated interest incurred to date to
OP&F. Should the employer be unable to remit the interest accrued in full,
and all other conditions are met, the board will permit the employer to enter
into the payment plan, however the employer's payments will be first applied to
the accrued interest portion and then to the past due balance related to
contributions and penalties. Interest on those past due balances and penalties
will apply until the remaining balance is fully satisfied and based on the
repayment term. The total repayment term is limited to the provisions otherwise
outlined in paragraph (C)(4) of this rule.
(7) Upon OP&F's receipt of the required
documents from the employer, further penalties will be suspended in exchange
for the time certain repayment of funds due to OP&F made on a regular,
periodic basis (monthly) as outlined on the payment schedule.
(8) For active employers who are
participating in full compliance with the payment plan, the payment for regular
quarterly bills will continue as normal and the billing statement will remove
any reference to the unpaid penalties and interest covered under this
arrangement unless the employer defaults.
(9) Interest will be calculated on
accumulated penalty balance based on payment term selected. The balance due
(penalty and interest) is to be amortized and repaid within the terms of the
promissory note at the actuarial assumed rate of interest, which is currently 8.25 per cent and subject to
change.
(10) The employer
will be given strict payment dates with a fifteen day grace period for late
payments. Further, each employer will only be allowed two late payments in any
twelve calendar months. Employers will be notified of their late payment and
failure to conform to promissory note terms on each occurrence may trigger a
default covered by paragraph (D) of this rule.
(D) Failure to comply with the terms of the
signed promissory note and agreement as described in paragraph (C) of this rule
will put the employer in default status and OP&F shall terminate the
agreement, at its option, and re-establish penalties retroactively back to the
effective date of the promissory note, with a reduction of penalties for all
payments of principal and interest made under the promissory note. The exercise
of OP&F's right to declare a default shall be determined by OP&F's
executive director.
(1) Upon default, the
employer will be notified of the employer's failure to conform to the terms of
the promissory note and agreement as well as OP&F's decision to terminate
the agreement.
(2) OP&F will
initiate the certification process with the county where the employer resides
to collect the balance of funds due to OP&F.
(E) All payments due under a payment plan
shall be made as follows:
(1) Payments shall
be due on the first of each month.
(2) Payments for active employers shall be
sent to OP&F separately and not commingled with normal employer and
employee contribution, which are paid quarterly.
(3) There is no prepayment penalty; excess
amounts will be applied to principal.
(4) At the end of the term, any overpayments
due to prepayment will be refunded back to the employer.
(5) Bounced checks will be charged back to
employers with fees consistent with normal OP&F practices.
Notes
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.352, 742.353
Prior Effective Dates: 10/22/2004, 07/27/2005 (Emer.), 10/13/2005, 11/19/2020
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.352, 742.353
Prior Effective Dates: 10/22/2004, 07/27/2005 (Emer.), 10/13/2005, 10/04/2010
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