Ohio Code 145.23 – Creation of funds
The funds hereby created are the employees’ savings fund, the employers’ accumulation fund, the annuity and pension reserve fund, the income fund, the survivors’ benefit fund, the defined contribution fund, and the expense fund.
Terms Used In Ohio Code 145.23
- Accumulated contributions: means the sum of all amounts credited to a contributor's individual account in the employees' savings fund together with any interest credited to the contributor's account under section 145. See Ohio Code 145.01
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Annuity: means payments for life derived from contributions made by a contributor and paid from the annuity and pension reserve fund as provided in this chapter. See Ohio Code 145.01
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- contributor: includes any person participating in a PERS defined contribution plan. See Ohio Code 145.01
- Dependent: A person dependent for support upon another.
- 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
- Member: includes a PERS retirant who becomes a member under division (C) of section 145. See Ohio Code 145.01
- Pension reserve: means the present value, computed upon the basis of the mortality and other tables adopted by the board, of all payments to be made on account of any retirement allowance or benefit in lieu of any retirement allowance, granted to a member or beneficiary under this chapter. See Ohio Code 145.01
- Pensions: means annual payments for life derived from contributions made by the employer that at the time of retirement are credited into the annuity and pension reserve fund from the employers' accumulation fund and paid from the annuity and pension reserve fund as provided in this chapter. See Ohio Code 145.01
(A) The employees’ savings fund is the fund in which shall be accumulated contributions from the earnable salaries of contributors for the purchase of annuities or retirement allowances.
The accumulated contributions of a contributor returned to the contributor upon withdrawal, or paid to the contributor’s estate or designated beneficiary in the event of death, shall be paid from the employees’ savings fund. Any accumulated contributions forfeited by failure of a member, or a member’s estate, to claim the same, shall remain in the employees’ savings fund or may be transferred to the income fund. The accumulated contributions of a contributor shall be transferred from the employees’ savings fund to the annuity and pension reserve fund in the event of the contributor’s retirement.
(B) The employers’ accumulation fund is the fund in which shall be accumulated the reserves for the payment of all pensions and disability benefits payable as provided in this chapter. The amounts paid by any employer under section 145.48 of the Revised Code shall be credited to the employers’ accumulation fund. Amounts paid by an employer under section 145.483 of the Revised Code shall be credited to the employers’ accumulation fund, except that if the amounts paid by the employer are for members participating in a PERS defined contribution plan those amounts may be credited to the defined contribution fund.
Amounts paid by an employer under section 145.86 of the Revised Code may be credited to the employers’ accumulation fund.
Any payments made into the employers’ accumulation fund by a member as provided in section 145.31 of the Revised Code shall be refunded to such member under the conditions specified in section 145.40 of the Revised Code.
Upon the retirement of a contributor, the full amount of the contributor’s pension reserve shall be transferred from the employers’ accumulation fund to the annuity and pension reserve fund.
(C) The annuity and pension reserve fund is the fund from which shall be paid all pensions, disability benefits, annuities, and benefits in lieu thereof, because of which reserves have been transferred from the employees’ savings fund and the employers’ accumulation fund. The annuity and pension reserve fund is also the fund from which shall be paid all pensions, disability benefits, annuities, and benefits in lieu thereof under a PERS defined contribution plan, if reserves have been transferred to the fund for that purpose.
(D) The income fund is the fund from which interest is transferred and credited on the amounts in the funds described in divisions (B), (C), and (F) of this section, and is a contingent fund from which the special requirements of the funds may be paid by transfer from this fund. All income derived from the investment of the funds of the system, together with all gifts and bequests, or the income therefrom, shall be paid into this fund.
Any deficit occurring in any other fund that will not be covered by payments to that fund, as otherwise provided in Chapter 145. of the Revised Code, shall be paid by transfers of amounts from the income fund to such fund or funds. If the amount in the income fund is insufficient at any time to meet the amounts payable to the funds described in divisions (C) and (F) of this section, the amount of the deficiency shall be transferred from the employers’ accumulation fund.
The system may accept gifts and bequests. Any gifts or bequests, any funds which may be transferred from the employees’ savings fund by reason of lack of a claimant, any surplus in any fund created by this section, or any other funds whose disposition is not otherwise provided for, shall be credited to the income fund.
(E) Except as provided in division (G) of this section, the expense fund is the fund from which shall be paid the expenses of the administration of this chapter, exclusive of amounts payable as retirement allowances and as other benefits.
(F) The survivors’ benefit fund is the fund from which shall be paid dependent survivor benefits provided by section 145.45 of the Revised Code.
(G) The defined contribution fund is the fund in which shall be accumulated the contributions deducted from the earnable salary of members participating in a PERS defined contribution plan, as provided in section 145.85 of the Revised Code, together with any earnings credited thereon. The defined contribution fund is the fund in which may be accumulated the contributions under section 145.86 of the Revised Code, together with any earnings credited thereon. Except as provided in division (C) of this section, the defined contribution fund is the fund from which shall be paid all benefits provided under a PERS defined contribution plan and from which may be paid administrative expenses of the plan.