OEA Legislative Watch

Pension Reform Begins with “Placeholder” Bills
in House and Senate

House Bill 69, sponsored by Representative Lynn Wachtmann (R-Napoleon) has been introduced as a vehicle for pension reform in the Ohio House. At introduction, the bill would make changes to pension benefits approved by the five state retirement systems in 2009 but eliminates any additional employer contributions in those plans.

Last week the STRS Board made significant changes to the plan it had earlier adopted. Those changes and others are anticipated to be rolled into HB 69. OEA supports the changes recommended by OPERS and SERS. However, OEA believes that the changes recommended by the STRS Board are too severe and shift too much of a burden on active teachers while ignoring billions of dollars in market gains over the past six months.

HB 69 will be heard by a House subcommittee dealing with pension issues. During sponsor testimony, Representative Wachtmann indicated that he would like to see pension legislation enacted on the same timeline as the state budget and completed by July 1.

Senate Bill 3, sponsored by Senator Keith Faber (R-Celina), is another “placeholder” bill on pension reform. At this time, the only language that it contains calls for changes to the law to “modernize, update, and improve the actuarial soundness” of the state retirement systems.

For more information and to contact your state legislators and take action on pension reform click here http://aces.ohea.org/