OH SB345

Changes "final average salary" calculation from highest three consecutive or nonconsecutive years to highest five consecutive or nonconsecutive years for pension determinations.

Modifies employee contribution rates from fixed ten percent to a variable range of ten to fourteen percent of annual salary, with the retirement board authorized to adjust rates based on actuarial valuation and amortization requirements.

Restricts automatic three percent annual pension increases to eligible persons age 65 or older receiving pensions not exceeding 185 percent of federal poverty level; other eligible persons may receive increases up to three percent only if actuarially sustainable.

Establishes eligibility for pension increases based on pension effective date: persons with prior effective dates have more lenient eligibility (age 53+), while persons with effective dates on or after the amendment require age 60 or older.

Splits deferred retirement option plan member contributions so that ten percent accrues to member's benefit and amounts exceeding ten percent are credited to the employer's accumulation fund.