Ohio Admin. Code 3309-1-54 - Purchase of service credit by payroll deduction
(A) A member of the school employees
retirement system may purchase service credit by payroll deduction
with amounts designated by the member's employer as
picked-up contributions under a plan which is in compliance with section
414(h)(2) of the Internal Revenue Code pursuant to agency 3309 of the
Administrative Code and section
3309.021,
3309.022,
3309.26,
3309.261,
3309.301,
3309.31,
3309.41,
3309.473,
3309.474,
3309.73,
3309.731, or
3309.75 of the Revised Code.
Prior
(1)
Payroll deduction
purchase plans received before January 1, 2019, and whose starting date is
before January 1, 2019, shall be paid with amounts designated by the member's
employer as picked-up contributions under a plan in compliance with section
414(h)(2) of the Internal
Revenue Code of 1986,
26 U.S.C. 414(h)
(2). Prior to the purchase of service
credit with amounts designated as picked-up contributions, the member's
employer shall have adopted and filed with the retirement system a resolution
authorizing the purchase of service credit for its employees by payroll
deduction with amounts designated as picked-up and paid to the retirement
system by the employer.
(2)
Payroll deduction purchase plans with a starting date
on or after January 1, 2019 may not be paid with amounts designated by the
member's employer as picked-up contributions under a plan in compliance with
section 414(h)(2) of the Internal
Revenue Code.
(B)
(1) Upon a member's request to purchase
service credit with amounts designated as picked-up
contributions, the retirement system shall prepare and forward to the
member payroll deduction purchase plan documents, which
shall include a cost estimate and a payroll deduction authorization
form. The payroll deduction authorization form
shall
which sets
set forth:(b)
(c) The number of months
over
payments in which the service is to
be purchased;
including the month of commencement and termination;
and
(c)
(d) The amount of each monthly payment; and
.
(a)
The type and amount of service to be purchased;
(b)
The employer's
payroll cycle;
(e)
The starting date
of the payments.
(2)
The
(3)
(b) The payroll
officer of the member's employer shall complete the employer's portion of the
payroll deduction authorization form; and
return the form to the retirement
system.
(a)
The member shall complete and sign the employee
portion of the payroll deduction authorization form and forward it to the
member's employer;.
(c)
The retirement system must receive the completed
authorization form and first payment before the expiration of the cost
estimate.
(4) A separate payroll deduction
authorization form shall be completed for each separate type of service credit
to be purchased.
(C)
(1)
A separate payroll deduction authorization form shall
be completed for each separate type of service credit to be
purchased;
(2)
Only one service credit purchase plan at a time may be
in place for each separate type of service credit;
(3)
The maximum
number of months over which service may be purchased under a payroll deduction
purchase plan shall be one hundred twenty;
(4)
The allocation of
each payment toward interest and purchase of service credit shall be uniform
for the period of the payroll deduction purchase plan;
(5)
If a payroll
deduction purchase plan is terminated early, the member shall be granted
service credit based on the total amount allocated toward the purchase of
service that was remitted to the retirement system under the payroll deduction
purchase plan.
(1)
The employer shall begin payroll deduction
in
on the
month
starting
date set forth on the payroll deduction authorization form.
(2) The employer shall remit the amounts
withheld and designated as picked up
contributions directly to the retirement system on
a monthly
the
employer's payroll cycle basis;, accompanied by a report that identifies the members for
which amounts are being remitted by name and social security
number.
(3)
Notwithstanding paragraph (E)(2) or (F)(2) of this
rule, if a completed payroll deduction authorization form is returned to the
retirement system, but at any point thereafter the employer fails to remit the
amounts to be withheld to the retirement system for three consecutive months,
the retirement system shall terminate the payroll deduction purchase
plan.
(D)
(1) Upon request from the public
employees retirement system or the state teachers retirement system, the school
employees retirement system shall calculate and certify to the requesting
system the cost to a former member to restore service credit under section
3309.26 of the Revised Code, plus interest, for each year or portion of a year
for which the member seeks to purchase service credit.
(2) Upon receipt of payments
transferred pursuant to section 145.311 or 3307.711 of the Revised Code, the
school employees retirement system shall restore the former member's service
credit for which payment is transferred.
(E)
When a member is purchasing service credit under a payroll deduction purchase plan as provided for in paragraph (A)(1) of this rule:
(1)
A
The member
who is purchasing service credit pursuant to this
rule cannot:
(a) Decrease or increase
the amount of the payroll deduction;
(b) Terminate the payroll deduction unless
the member has terminated employment or purchased all of the service credit set
forth on the payroll deduction authorization form; or
(c) Make a direct payment to the retirement
system to purchase the service credit.
(2) The member's employer shall not decrease,
increase, or terminate the payroll deduction unless the member has terminated
employment or purchased all of the service credit set forth on the payroll
deduction authorization form.
(3) Notwithstanding paragraph
(E)(2) of this rule, if an employer returns a payroll deduction authorization
form to the retirement system, but at any point thereafter fails to remit the
amounts to be withheld to the retirement system for three consecutive months,
the retirement system shall terminate the service credit purchase. In the event
of termination under this paragraph, the member shall be granted service credit
based on the total amount that was remitted to the system under the payroll
deduction plan.
(F)
When a member is
purchasing service credit under a payroll deduction purchase plan as provided
for in paragraph (A)(2) of this rule:
(1)
The member
can:
(a)
Terminate a payroll deduction plan at any time by providing
written notice to the member's employer and by notifying the retirement
system;
(b)
Make a direct payment to the retirement system to
purchase the remaining service credit. To purchase the remainder of service
credit, the member must first terminate the payroll deduction purchase plan and
then submit a request to the retirement system for a statement of the balance
due.
(2)
The member's employer shall not decrease, increase, or
terminate the payroll deduction purchase plan unless the member has terminated
the payroll deduction purchase plan, terminated employment, or purchased all of
the service credit set forth in the payroll deduction authorization
form.
(G)
A member who has had one or more prior payroll
deduction purchase plans for a type of service credit may establish a new
payroll deduction purchase plan for the same type of service credit. The new
plan's commencement date must be six or more months after the first deduction
under the most recent payroll deduction purchase plan for the same type of
credit.
(H)
Upon receipt of payments transferred pursuant to
section 145.311 or
3307.711 of the Revised Code,
the school employees retirement system shall restore the former member's
service credit for which payment is transferred.
Notes
Promulgated Under: 111.15
Statutory Authority: 3309.04
Rule Amplifies: 3309.021, 3309.022, 3309.26, 3309.261, 3309.262, 3309.27, 3309.301, 3309.31, 3309.35, 3309.41, 3309.473, 3309.474, 3309.73, 3309.731, 3309.75
Prior Effective Dates: 11/01/1997, 02/11/2000, 05/02/2001, 11/19/2001 (Emer.), 02/11/2002, 05/03/2002, 01/07/2013 (Emer.), 03/08/2013, 08/13/2015, 04/06/2017, 10/11/2018
Promulgated Under: 111.15
Statutory Authority: 3309.04
Rule Amplifies: 3309.021, 3309.022, 3309.26, 3309.261, 3309.262, 3309.27, 3309.301, 3309.31, 3309.35, 3309.41, 3309.473, 3309.474, 3309.73, 3309.731, 3309.75
Prior Effective Dates: 11/01/1997, 02/11/2000, 05/02/2001, 11/19/2001 (Emer.), 02/11/2002, 05/03/2002, 01/07/2013 (Emer.), 03/08/2013, 08/13/2015, 04/06/2017, 10/11/2018
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