WeVote
Log In

Bill

Bill

HB 877

Regards limits on the purchase of retirement service credit

136th Legislature (2025-2026) Introduced by Sean Brennan and 5 co-sponsors

The bill tightens and standardizes eligibility, limits, and funding for purchasing prior service credits across Ohio retirement systems, with a five-year cap and cross-system aggre

Referred to committee
#publicofficialsandemployees #retirement #stateandlocalgovernment
0
WeVote Research Nonpartisan
Bill Summary · HB 877

Overview

HB 877 (136th General Assembly, Ohio) introduced by Rep. Glassburn with several cosponsors seeks to reform limits on purchasing retirement service credit for Ohio public employees. The bill would repeal existing provisions related to certain retirement credit purchase sections and replace them with revised rules governing purchases of service credit when the work was performed for the United States government, other states, or municipal entities within Ohio. The core aim is to tighten, clarify, and unify eligibility, limits, and funding mechanics for purchasing prior service credits across multiple retirement systems.

Main purpose and intent

  • Clarify and constrain how members can purchase prior service credit for periods worked outside Ohio, or in other jurisdictions (federal, state, or municipal roles).
  • Establish uniform caps on the total amount of service credit that may be purchased across related sections.
  • Align purchase processes with actuarial liabilities and ensure members certify conformity to restrictions on receiving benefits from other retirement programs.

Key provisions and changes

  • Revisions to Sec. 145.293:

    • Permits purchase of service for:
    • (1) Service in another state or in any U.S. government entity that would be covered by Ohio retirement systems if served in Ohio.
    • (2) Service funded by a municipal retirement system in Ohio, with conditions per section 145.2910/2911.
    • Cap: total years purchased under this section (145.293) cannot exceed the lesser of five years or the member’s total accumulated Ohio service.
    • Ineligibility: cannot purchase credit for service used in calculating current/future benefits under other retirement programs except Social Security; member must certify compliance.
    • Credit purchased under this section may be combined with credit under 3307.74 and 3309.31, but aggregate purchase from these sections may total no more than five years for retirement eligibility or benefit calculations under 145.37.

  • Revisions to Sec. 742.251 (Ohio Police and Fire Pension Fund):

    • Full credit for out-of-state or federal service (excluding military) is granted if certain conditions are met.
    • Purchase allowed if:
    • Service as a state/local government employee or U.S. government employee.
    • Eligible to retire or will become eligible by purchasing the credit.
    • Member agrees to retire within 90 days after notice of liability.
    • Payment: actuarial liability for each year purchased must be paid in full at purchase.
    • Cap: up to five years.
    • Ineligibility: cannot purchase service used in calculating any current or future retirement benefits other than Social Security.
    • If retirement does not occur within 90 days post-purchase, credit is withdrawn and funds refunded.

  • Revisions to Sec. 3307.74 (STRS Defined Benefit Plan):

    • Purchasable credits include:
    • Teaching service in schools or U.S.-related entities; credit limited to government-chartered/accredited institutions.
    • Public service in another state or U.S. government for service that would be covered by specific Ohio retirement systems.
    • Municipal service in Ohio (with conditions per 3307.762/763).
    • Cap: five years or total Ohio service, whichever is less.
    • Ineligibility: service used in current/future benefits under other retirement programs (except Social Security).
    • Credit may be combined with 145.293 and 3309.31, with an aggregate five-year limit for determining eligibility/benefits under STRS rules.
    • STRS retirement board policy on eligibility; board’s decision is final.
    • Payment mechanics governed by STRS rules (including actuarial calculations and potential partial payments).

  • Revisions to Sec. 3309.31 (School Employees Retirement System):

    • Credit for:
    • School service in other states or U.S. government entities, limited to appropriately chartered/accredited institutions.
    • Public service in other states/U.S. government for service covered by specific Ohio systems.
    • Municipal Ohio service (with eligibility per 3309.75 if applicable).
    • Cap: five years or total Ohio service.
    • Payment: equal to member’s first-year Ohio retirement contribution plus compound interest from membership to payment date; partial payments allowed per board rules.
    • Ineligibility: prevent duplication with benefits under other retirement programs (except Social Security).
    • Credit may be combined with 145.293 and 3307.74, but overall aggregate purchase limited to five years for determining eligibility/benefits under 3309.35.
    • STRS-like policy: the board’s eligibility decision is final.

  • Repeals: The act would repeal existing sections 145.293, 742.251, 3307.74, and 3309.31 and replace them with the updated language.

Who is affected

  • Members of Ohio’s public retirement systems:
    • Public Employees Retirement System (PERS)
    • Ohio Police and Fire Pension Fund (OP&F)
    • State Teachers Retirement System (STRS)
    • School Employees Retirement System (SERS)
  • Retirements staff and boards administering these systems.
  • Employers and municipalities whose employees’ service credits may be purchased under these provisions.

Procedural and timeline notes

  • The bill is introduced in the 2025-2026 session; it would become law only after the usual legislative process (committee hearings, potential amendments, and passage by both houses and approval by the governor).
  • Key operational dates depend on actuarial determinations and member notification timelines as defined by each retirement system’s rules once implemented.

If you’d like, I can map each section to a side-by-side comparison with current law to highlight all substantive shifts.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.