As state lawmakers work on a series of public pension reform bills, one state representative says the reform effort should fix “double-dipping” of employees who retire, collect their pensions and are rehired on the taxpayers’ dime.

Fremont Republican Rep. Rex Damschroder wants his colleagues on the Pension Reform Committee to end the practice of rehiring retired public employees. Damschroder’s idea is outlined in a bill introduced late last year that hasn’t had much traction.

“If we’re serious about pension reform I think it ought to a part of the equation,” Damschroder told the Dayton Daily News. “It’s a big issue in the state of Ohio — it costs the state taxpayers a lot of dollars.”

But senators who approved a package of five pension system reform bills say the package should not be altered except by the system administrators seeking reform.

“Double-dipping” refers to public retirement system retirees who accept part- or full-time employment after drawing their pensions. A 2010 investigation by the Dayton Daily News and other Ohio newspapers found most rehired retirees earn less than they did pre-retirement. School districts and other municipalities say the practice allows them to hire experienced workers at an overall cost savings because rehires often work part time or take a pay cut.

But the investigation found high-earning double-dippers stand to make upwards of $900,000 for cashing in early and returning to work in an executive post after a brief two-month break. A 2010 study by the Buckeye Institute, a right-leaning think tank, found upper level public employees can retire earlier than private sector employees and receive million-dollar lump sums upon actual retirement.

Damschroder’s bill would suspend retirement benefits of a public retirement system retiree who returns to public employment. Future benefits for the employee would continue to grow while working post-retirement.

But pension system officials say double-dipping is not the silver bullet to rescuing state funds. Nick Treneff, spokesman for the State Teachers Retirement System, said Damschroder’s plan wouldn’t change the fund long term — deferred benefits would still grow with the help of employer contributions and eventually be paid.

“Under our current plan, reemployed retirees don’t have a negative impact on the solvency of the fund,” Treneff said.

The systems have proposed requiring employees to work longer before retirement, which Treneff said might reduce the number of double dippers.

The pension reform panel didn’t discuss Damschroder’s proposal during its Wednesday meeting but the House plans to reconvene in September to vote on one bill for each system: the Public Employees Retirement System, State Teachers Retirement System, Schools Employees Retirement System (nonteachers), Ohio Police and Fire Pension Fund and Highway Patrol Retirement System.

The reforms restore the troubled pension system finances by increasing the number of years of service and retirement age and accept smaller benefits. None of the reforms ask taxpayers to contribute more.

The Ohio Senate approved the pension bills in May. Senate President Tom Niehaus, a New Richmond Republican who sponsored the bills, said he hadn’t discussed the double-dipping bill. Niehaus said he is open to considering changes in the legislation — as long as the pension plans and boards are in agreement and get buy-in from their members.

Sen. Bill Beagle, R-Tipp City, said he’s heard both sides of the double-dipping issue but it should be considered separately.

“From the Senate perspective, we had an interest in pension plans and financial health and stability,” Beagle said. “We do that by employing the recommendations of the administrators.”