HB 877

As Introduced
136th General Assembly
   Regular Session  H. B. No. 877
       2025-2026
  Representative Glassburn
  Cosponsors: Representatives Brennan, Piccolantonio, Thomas, D., McNally,
  Upchurch
  To amend sections 145.293, 742.251, 3307.74, and  1
  3309.31 of the Revised Code regarding limits on  2
  the purchase of retirement service credit based  3
  on employment with the United States Government,  4
  a state, or a political subdivision.  5
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 145.293, 742.251, 3307.74, and  6
3309.31 of the Revised Code be amended to read as follows:  7
     Sec. 145.293. (A) Service credit may be purchased under  8
this section for the following:  9
     (1) Service rendered in another state, and service in any  10
entity operated by the United States government, that, if served  11
in a comparable position in Ohio, would be covered by the public  12
employees retirement system, Ohio police and fire pension fund,  13
state teachers retirement system, school employees retirement  14
system, or state highway patrol retirement system;  15
     (2) Service for which contributions were made by the  16
member or on the member's behalf to a municipal retirement  17
system in this state, except that if the conditions specified in  18
H. B. No. 877  Page 2
As Introduced
section 145.2910 of the Revised Code are met, service credit for  19
this service may be purchased only in accordance with section  20
145.2911 of the Revised Code.  21
        The number of years purchased under this section shall not  22
exceed the lesser of five years or the member's total  23
accumulated number of years of Ohio service.  24
        (B) Credit shall be purchased under this section in  25
accordance with section 145.29 of the Revised Code.  26
        (C) A member is ineligible to purchase under this section  27
credit for service under former section 145.44 of the Revised  28
Code or service that is used in the calculation of any  29
retirement benefit currently being paid or payable in the future  30
to the member under any other retirement program except social  31
security. At the time the credit is purchased the member shall  32
certify on a form furnished by the retirement board that the  33
member does and will conform to this requirement.  34
        (D) Credit purchased under this section may be combined  35
pursuant to section 145.37 with credit purchased under sections  36
3307.74 and 3309.31 of the Revised Code, except that not more  37
than an aggregate total of five years' service credit purchased  38
under this section and sections 3307.74 and 3309.31 of the  39
Revised Code shall be used in determining retirement eligibility  40
or calculating benefits under section 145.37 of the Revised  41
Code.  42
        Sec. 742.251. (A) A member of the Ohio police and fire  43
pension fund who is not a participant in the deferred retirement  44
option plan established under section 742.43 of the Revised  45
Code, in computing years of active service under division (C) of  46
section 742.37 or section 742.39 of the Revised Code, shall be  47
H. B. No. 877  Page 3
As Introduced
given full credit for full-time out-of-state or federal service,  48
other than military service, purchased under this section. A  49
member may purchase credit for such service if all of the  50
following conditions are met:  51
       (1) The service was rendered as an employee of an entity  52
of state or local government, or of an entity of the United  53
States government;  54
       (2) The member is eligible to retire under this chapter or  55
will become eligible to retire as a result of purchasing the  56
credit;  57
       (3) The member agrees to retire within ninety days after  58
receiving notice of the amount determined under division (B) of  59
this section.  60
       (B) On receipt of a request from a member eligible to  61
purchase credit under this section, the fund shall obtain from  62
its actuary certification of the amount of the additional  63
liability to the fund for each year of credit the member is  64
eligible to purchase and shall notify the member of that amount.  65
For each year of credit purchased, the member shall pay to the  66
fund an amount equal to the additional liability resulting from  67
the purchase of credit for that year. Payment shall be made in  68
full at the time of purchase.  69
       (C) The number of years of service purchased under this  70
section shall not exceed five.  71
       (D) A member may not purchase credit under this section  72
for service that is used in the calculation of any public or  73
private retirement benefit, other than federal social security  74
benefits, currently being paid or payable in the future to the  75
member.  76
H. B. No. 877  Page 4
As Introduced
       (E)(D) If the member does not retire within ninety days  77
after purchasing credit under this section, the fund shall  78
withdraw the credit and refund the amount paid by the member.  79
       Sec. 3307.74. (A) Service credit may be purchased under  80
section 3307.70 of the Revised Code by a member participating in  81
the STRS defined benefit plan for the following:  82
       (1) Teaching service in a public or private school,  83
college, or university of this or another state, and for  84
teaching service in any school or entity operated primarily for  85
United States citizens. Teaching credit shall be limited to  86
service rendered in schools, colleges, or universities chartered  87
or accredited by the appropriate governmental agency.  88
       (2) Public service with another state or the United States  89
government, provided that such credit shall be limited to  90
service that would have been covered by the state teachers  91
retirement system, school employees retirement system, Ohio  92
police and fire pension fund, state highway patrol retirement  93
system, or public employees retirement system if served in a  94
comparable public position in this state.  95
       (3) Service for which contributions were made by the  96
member or on the member's behalf to a municipal retirement  97
system in this state, except that if the conditions specified in  98
section 3307.762 of the Revised Code are met, service credit for  99
this service may be purchased only in accordance with section  100
3307.763 of the Revised Code.  101
       The number of years of service credit for service  102
described in this section shall not exceed the lesser of five  103
years or the member's total accumulated number of years of Ohio  104
service.  105
H. B. No. 877  Page 5
As Introduced
       (B) Credit shall be purchased under this section in  106
accordance with section 3307.70 of the Revised Code.  107
       (C) With the exception of social security, a member is  108
ineligible to purchase credit for service described in this  109
section that is used in the calculation of any retirement  110
benefit that has been paid, is currently being paid, or is  111
payable in the future to such member under any other retirement  112
program. At the time the credit is purchased, the member shall  113
certify on a form furnished by the board that the member does  114
and will conform to this requirement.  115
       (D) Credit for service described in this section may be  116
combined pursuant to section 3307.57 of the Revised Code with  117
credit purchased under sections 145.293 and 3309.31 of the  118
Revised Code, except that not more than a total of five years'  119
credit for service described in this section and sections  120
145.293 and 3309.31 of the Revised Code shall be used in  121
determining retirement eligibility or calculating benefits under  122
section 3307.57 of the Revised Code.  123
       Sec. 3309.31. Service credit purchased under this section  124
shall be included in the member's total service credit. Credit  125
may be purchased for the following:  126
       (A) School service in a public or private school, college,  127
or university of this or another state, and for school service  128
in any school or entity operated by or for the United States  129
government. Credit purchased under this section for school  130
service shall be limited to service rendered in schools,  131
colleges, or universities chartered or accredited by the  132
appropriate governmental agency.  133
       (B) Public service with another state or the United States  134
H. B. No. 877  Page 6
As Introduced
government, provided that such credit shall be limited to  135
service that would have been covered by the state teachers  136
retirement system, the Ohio police and fire pension fund, the  137
state highway patrol retirement system, or the public employees  138
retirement system if served in a comparable public position in  139
this state.  140
       (C) Service for which contributions were made by the  141
member or on the member's behalf to a municipal retirement  142
system in this state, except that if the conditions specified in  143
section 3309.74 of the Revised Code are met, service credit for  144
this service shall be purchased only in accordance with section  145
3309.75 of the Revised Code.  146
       The number of years of service purchased under this  147
section shall not exceed the lesser of five years or the  148
member's total accumulated number of years of Ohio service.  149
       For each year of service purchased under this section, a  150
member shall pay to the school employees retirement system for  151
credit to the member's accumulated account an amount equal to  152
the member's retirement contribution for full-time employment  153
for the first year of Ohio service following termination of the  154
service to be purchased. To this amount shall be added an amount  155
equal to compound interest at a rate established by the school  156
employees retirement board from the date of membership in the  157
school employees retirement system to date of payment. A member  158
may choose to purchase only part of such credit in any one  159
payment, subject to board rules.  160
       A member is ineligible to purchase under this section  161
service that is used in the calculation of any retirement  162
benefit currently being paid or payable in the future to the  163
member under any other retirement program, except social  164
H. B. No. 877  Page 7
As Introduced
security. At the time the credit is purchased, the member shall  165
certify on a form furnished by the retirement board that the  166
member does and will conform to this requirement.  167
       (D) Credit purchased under this section may be combined  168
pursuant to section 3309.35 of the Revised Code with credit  169
purchased under sections 145.293 and 3307.74 of the Revised  170
Code, except that not more than an aggregate total of five  171
years' service credit purchased under this section and sections  172
145.293 and 3307.74 of the Revised Code shall be used in  173
determining retirement eligibility or calculating benefits under  174
section 3309.35 of the Revised Code.  175
       (E) The retirement board shall establish a policy to  176
determine eligibility to purchase credit under this section, and  177
its decision shall be final.  178
       Section 2. That existing sections 145.293, 742.251,  179
3307.74, and 3309.31 of the Revised Code are hereby repealed.  180