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Ohio workers pension fund may sue if contributions cut | Ohio politics
 

Home > Blogs > Ohio politics > Archives > 2009 > June > 25 > Entry

Ohio workers pension fund may sue if contributions cut

The Ohio Public Employee Retirement System would likely sue the state if it reduces state workers pension contributions to help balance the budget, the pension system director told lawmakers.

In a move designed to help balance the upcoming budget, Gov. Ted Strickland has proposed writing an IOU to 60,150 state workers, promising to pay back contributions to the OPERS down the road. Reducing the contribution rate from 14 percent to 8 percent over two years would save the state more than $250 million, according to the Strickland administration.

But OPERS Director Chris DeRose said this move would cut into the fund’s ability to provide retiree health care benefits and erode the system’s financial solvency.

And DeRose said OPERS would consider suing the state if it follows through on Strickland’s proposal. Similar lawsuits in other states, such as California and North Carolina, were won by the pension systems when the courts found the state was obligated to pay and make up for lost investment income, according to OPERS.

Permalink | Comments (41) | Post your comment |

Comments

By James

November 8, 2009 2:21 AM | Link to this

I am infuriated at the fact that i can’t draw from both the OPERS and Social Security. I worked for state government for 16 years and the rest of my working life on Social Security. OPERS can’t pay me a decent living retirement. But, with both Social Security and OPERS, I would have a nice retirement. What happens to all that money I paid into Social Security?

By Tom Severns

June 29, 2009 8:34 AM | Link to this

The Ohio Constitution prohibits borrowing to fund current year operations; clearly the Governor’s proposal does exactly that, and if enacted OPERS should immediately file suit.

By Reva M. Eisaman

June 27, 2009 10:16 AM | Link to this

I did not retire in 2008 due to the worst economy ever and was just about to retire in July, however, I plan on retiring in January, 2010, but if Strickland takes away the health benefits, I guess I’m stuck working until I’m 65 and eligible for Medicare. This country is in one poor mess.

By disgusted

June 26, 2009 3:16 PM | Link to this

I do not have an open ended check book and I would like to be able to retire during my lifetime. Please stop stealing from me to take care of things temporarly. Easy fixes do not solve problems only postpone.

By KO

June 26, 2009 1:45 PM | Link to this

I was under the impression that, at long last, someone finally had the stones to stand up to the overpaid and underworked state of Ohio employees by actually and permanently cutting the State’s share of PERS contributions. This doesn’t balance the budget. It merely postpones the payment. Let’s do what really should be done and cut the contribution PERMANENTLY.

By Linda

June 26, 2009 11:53 AM | Link to this

What! How do you balance a budget with I.O.U.’s? Is the Governors’ retirement an I.O.U. also? OPERS is suppose to be secured and SAFE. He should NOT be able to touch OUR funds. This is what WE worked for and contributed to. Keep your hands off Governor Strickland!

By Dave G

June 26, 2009 10:19 AM | Link to this

I’d like the option to not pat my State Income taxes and instead send the Governor an “IOU” stating that I might pay them “sometime down the road” if my personal finances improved!

By Donna

June 26, 2009 9:42 AM | Link to this

I recently retired from 33+ years of government service and receiving my retirement checks. I have contributed to OPERS for all these years and it frightens me that our leaders would even consider “borrowing” from this fund to try to fix the mess they have allowed to happen. The one thing that has stood out in my mind and has bothered me during my intire career is the “lack of government accountability” AT ALL LEVELS. The government spends money like it grows on trees and could care less as to where that money goes and how it is spent with zero accountability and follow up. I don’t get it! It saddens me that our country is in the condition it is in. We have lost the vision! I’m sick and tired of the talk, talk, talk, and promises, promises, promises without action! It’s time we forget the “POLITICS OF IT ALL” and get back to basics. Leaders get focused on this country! Stand up for what you believe and not be swayed by how it may affect your political career. Our nation is hurting! To remain a strong nation our leaders must be strong. IT’S TIME TO WAKE UP.

By Donna

June 26, 2009 9:42 AM | Link to this

I recently retired from 33+ years of government service and receiving my retirement checks. I have contributed to OPERS for all these years and it frightens me that our leaders would even consider “borrowing” from this fund to try to fix the mess they have allowed to happen. The one thing that has stood out in my mind and has bothered me during my intire career is the “lack of government accountability” AT ALL LEVELS. The government spends money like it grows on trees and could care less as to where that money goes and how it is spent with zero accountability and follow up. I don’t get it! It saddens me that our country is in the condition it is in. We have lost the vision! I’m sick and tired of the talk, talk, talk, and promises, promises, promises without action! It’s time we forget the “POLITICS OF IT ALL” and get back to basics. Leaders get focused on this country! Stand up for what you believe and not be swayed by how it may affect your political career. Our nation is hurting! To remain a strong nation our leaders must be strong. IT’S TIME TO WAKE UP.

By Joanie

June 25, 2009 6:38 PM | Link to this

The cost of health care is pushing everyone, private and public alike underwater. As we struggle to the surface to gasp for air, panic sets in and we grab for anything within reach. Strickland is in panic mode and he’ll drag us under with him. Yes, there are sacrifices to be made and no one wants to be a victim. As citizens we need to give as much input as possible and express our views (as we do here) to him personally. If anyone has a good idea to the solution to the problems, please write.

By Zoey

June 25, 2009 5:08 PM | Link to this

I resent all of you stating that Government workers are lazy, etc. I worked for the State of Ohio for 25+ years and there was never a day that I could goof off. We were very busy in our department providing medical students with a sound education so that they could go out and serve the people of the United States (including OHIO).

By Thomas D. Porter

June 25, 2009 4:18 PM | Link to this

When I started to work for the State of Ohio (at UC) in 1981, 8.5% of my gross (before taxes) salary came out for OPERS. Over the years, the contribtution was increased. Towards the end of my career I was able to afford to purchase my active military service credits of 3.825 years that allowed me to retire 6-1-2008 with over 30 years of State employement at full retirement benefits. My wife & I are now existing off my pension. Should I decide to get another job that pays into OPERS, my pension benefits STOP & I cannot do the “double dipping” other loud mouthed uniformed people accuse OPERS pensioners. If I get a job that does’t pay into OPERS, my pension will continue + what ever my salary may be. As far as Gov.Strickland goes, we all need to remember that Republicans are crooks and Democrats are fornicators, you know what to expect from a crook. Strickland’s IOu’s would be used for fornicating anyone he can, but OPERS will never see a penny of it again!

By Old Scratch

June 25, 2009 4:14 PM | Link to this

Layoffs are coming big time to highway maintenace, because some guy invented a shovel that stands by itself! No, seriously, whats big, yellow and sleeps four? A street maintenance truck! You got the government you deserve.

By Old Scratch

June 25, 2009 4:14 PM | Link to this

Layoffs are coming big time to highway maintenace, because some guy invented a shovel that stands by itself! No, seriously, whats big, yellow and sleeps four? A street maintenance truck! You got the government you deserve.

By Steve

June 25, 2009 4:11 PM | Link to this

Hey all you Dem’s and all the others who voted them into power! How’s the hope & change working for ya now?!

By Carl

June 25, 2009 3:44 PM | Link to this

First of all Taft was a fraud, A liberal in sheeps cloathing. Having said that I should have taken the goverment job offered to me back in the day. That way I would never had to work hard just pay my union dues and let them fight to keep my job while I did nothing. But I went into manfacturing and look at me now. Worked my butt off and just hanging on. Bad decision on my part. Should have done the goverment gravy train job.

By tcook

June 25, 2009 3:32 PM | Link to this

I HAVE WORKED FOR THE GOVT FOR THE LAST 7 YRS AND CANNOT EVEN GET FULL TIME BECAUSE OF THIS CRAPPY ECONOMY.I AM 56 AND WORK PERM. PARTTIME WITH NO HEALTH BENEFITS NOW THEY WANT TO TAKE WHAT LITTLE I WILL HAVE? WHAT IN THE HELL IS WRONG WITH YOU PEOPLE?

By george

June 25, 2009 2:59 PM | Link to this

You would think this Governor would learn from Social security system that has been raided over the years by congress and now will be empty in 20 years. he should be recalled from office

By GQ

June 25, 2009 2:46 PM | Link to this

This is much too hard. The union bosses should get access to everyone’s bank accounts and take what they want. Because they are part of the ruling class. We work they rule!

By Leslie

June 25, 2009 2:42 PM | Link to this

Businesses have left and are still leaving. The kids can’t find jobs and are leaving as the graduate. Where do these people think the tax dollars are going to come from to keep that match? If they sue the state and win, who do they think the money comes from? Us in the private sector that keep losing every day. We keep cutting back and the government workers keep wanting more from us. Reducing the match from 14 to 8 is proper. I can’t believe they get a 14 percent match, even 8 is great. Best employer match I ever had was 4. People need to get a clue as to where their money comes from. Wake up - we have no money to give you. Your pension match comes from taxes from people in the private sector.

By NatashaTV

June 25, 2009 2:19 PM | Link to this

She has a horrific driving record. Take her license and keep this fool off the road.

By Matt

June 25, 2009 2:11 PM | Link to this

Do you think state workers actually work? They are some of the laziest SOB’s working. Not as bad as the federal Gov’t employees but pretty darn close… Maybe this will make some of them work harder or find new jobs where they can’t slack off as much

By jojo

June 25, 2009 1:56 PM | Link to this

Hey mewantmore, I don’t work for the govt… There has to be state workers also, or else you would live in a sh@thole.

By jojo

June 25, 2009 1:52 PM | Link to this

IOU’s? That’s rediculous. What a joke he is. You don’t balance a budget with IOU’s.

By mewantmore

June 25, 2009 1:50 PM | Link to this

All the negative posts are a testament to just how many people currently work for the gov’t. They seem to forget (or maybe never realized) that it is the value created by the private sector that affords gov’t in the first place. When there are no private sector jobs left to pay for gov’t you better hope China remains generous.

By Thinkaboutit

June 25, 2009 1:36 PM | Link to this

This is rediculous, this man is going to rob from the people who work their a.. off and from the retiress. Why doesn’t he cut all the retarded social programs that don’t even work. There are so many programs out there that were funded to just make some liberal feel good. Give me the state budget, I’ll make up the money…..Once again the working class has to pay the bills (TWICE) first in taxes and then by cutting our rightful benefits to pay for the mess, legislators got us into.People we better wake up soon or this man is going to nickel and dime us on his way to bankrupting Ohio. Has this guy done anything he promised, Strickland please step down and take Mayor McHat of Dayton with you!!!!!!!!!! ………………………………………………………………………….

By tj

June 25, 2009 1:28 PM | Link to this

we all can sit here and complain, but lets not forget 8 years of Republican rule of Gov. Bob Taft put us in this position.

By tj

June 25, 2009 1:28 PM | Link to this

we all can sit here and complain, but lets not forget 8 years of Republican rule of Gov. Bob Taft put us in this position.

By Chris

June 25, 2009 1:27 PM | Link to this

Please don’t mess with my PERS retirement money, it’s all I have to live on and I’m old and not well. If you take away my heath care insurance I’ll not live a long life. I worked hard for all of my years for government and now it looks like they aren’t willing to work for me.

By tj

June 25, 2009 1:27 PM | Link to this

we all can sit here and complain, but lets not forget 8 years or Republican rule of Gov. Bob Taft put us in this position. Atleast this

By citizen

June 25, 2009 1:15 PM | Link to this

Sam don’t forget that the state employees who have paid into PERS are also citizens. so if they decide to come after taxes state employees will be hit twice.

By IOU

June 25, 2009 1:06 PM | Link to this

I did not vote for Strickland and hope that the people vote him out in the next election. Other states have tried this “borrowing” and never paid it back. Keep in mind that this is the same individual who supports year round school which would be a nightmare for child care.

By don

June 25, 2009 1:01 PM | Link to this

Bad idea…robbing Paul to pay Peter is how we got into this mess!

By don

June 25, 2009 12:59 PM | Link to this

Bad idea…robbing Paul to pay Peter is how we got into this mess!

By Kathy

June 25, 2009 12:43 PM | Link to this

Harry, you are right, union people helped put this guy in because he was a dem. At this point, I don’t know what he is, but certainly not for the working man.

By SAM

June 25, 2009 12:42 PM | Link to this

I did not vote for Strickland, but I respect him for balancing the budget. If the money is not there you have to make cuts! Better than the state comming after the citizens for more taxes!

By Kathy

June 25, 2009 12:41 PM | Link to this

Yea, he will pay it back, right! Just more people to go on public assistance if money is cut. Cuts have already been made to help.

By DIXIE LADY

June 25, 2009 12:19 PM | Link to this

Strickland’s cuts on education-libraries-health care & PERS shows his true colors. Little wonder his public opinion polls have dropped.

By chic

June 25, 2009 12:05 PM | Link to this

WE THE PEOPLE - YEAH RIGHT

By Harry

June 25, 2009 11:39 AM | Link to this

The union put him in office and now they have to live with him. Next time maybe they will see through the political BS and not follow like sheep!!!!!!!!!!!!!!!

By BreadMan

June 25, 2009 10:56 AM | Link to this

They Should if I decided to stop paying my obligations for my employee’s The Federal Government would padlock my doors, should not matter if it’s a State Government or Private Business, Social Security or PERS….

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