Ohio Code 145.48 – Rate of employer contribution
(A) Each employer shall pay to the public employees retirement system an amount that shall be a certain per cent of the earnable salary of all contributors to be known as the “employer contribution,” except that the public employees retirement board may raise the employer contribution to a rate not to exceed fourteen per cent of the earnable salaries of all contributors.
Terms Used In Ohio Code 145.48
- Actuary: means an individual who satisfies all of the following requirements:
(1) Is a member of the American academy of actuaries;
(2) Is an associate or fellow of the society of actuaries;
(3) Has a minimum of five years' experience in providing actuarial services to public retirement plans. See Ohio Code 145.01
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Earnable salary: includes the following:
(a) Payments made by the employer in lieu of salary, wages, or other earnings for sick leave, personal leave, or vacation used by the contributor;
(b) Payments made by the employer for the conversion of sick leave, personal leave, and vacation leave accrued, but not used if the payment is made during the year in which the leave is accrued, except that payments made pursuant to section 124. See Ohio Code 145.01
- employer: means the employer of any public employee. See Ohio Code 145.01
- Employer contribution: means the amount paid by an employer as determined under section 145. See Ohio Code 145.01
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Member: includes a PERS retirant who becomes a member under division (C) of section 145. See Ohio Code 145.01
- Regular interest: means interest at any rates for the respective funds and accounts as the public employees retirement board may determine from time to time. See Ohio Code 145.01
(B)(1) On the basis of regular interest and of such mortality and other tables as are adopted by the public employees retirement board, the actuary for the board shall determine the liabilities and employer rates of contribution as follows:
(a) The percentage of earnable salary that, when added to the per cent of earnable salary contributed by each member, will cover the costs of benefits to be paid to members for each year of service rendered;
(b) The percentage of earnable salary that, if paid over a period of future years, will discharge fully the system’s unfunded actuarial accrued pension liability;
(c) The percentage of earnable salary designated by the board to pay benefits authorized under section 145.58 of the Revised Code.
(2) If recognized assets exceed the liabilities for service previously rendered, on approval of the board, a percentage of earnable salary may be deducted from the employer rates of contribution that, if deducted annually over a period of future years, will eliminate the excess.