- 7 - In 1993, section 742.30(C) was added to the Ohio Revised Code which provided: (C) The board of trustees of the police and firemen's disability and pension fund may enter into an agreement with a municipal corporation for a single payment by the municipal corporation of the employer's accrued liability. The agreement may provide for a reduction in the amount of the accrued liability based on the value to the fund of receiving a single payment. A municipal corporation that has made payment in accordance with such an agreement shall have no further obligation to make payments under this section. [Ohio Rev. Code Ann. sec. 742.30(C) (Anderson Supp. 1995).] Pursuant to this provision, the State Fund allowed single, lump-sum payments, beginning October 20, 1993. The State Fund adopted 65 percent of the outstanding principal balance as the discounted amount it would accept for such a payment. From October 20, 1993, to December 14, 1995, 36 municipalities, including the City, made a lump-sum payment, in exchange for release of the full amount of their outstanding liability to the State Fund. On November 3, 1993, the City entered into a prepayment agreement with the State Fund. On November 15, 1993, the outstanding principal balance of the City Obligation was $41,435,720, which amount was still to be paid periodically until 2035. Under the agreement, the City agreed to pay a lump sum of $26,933,218, following which it would have no further obligation to the State Fund. The City was obligated to make the lump-sumPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011