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Kasich\'s pension proposal throws OPERS, STRS out of compliance | Ohio politics
 

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Kasich’s pension proposal throws OPERS, STRS out of compliance

Gov. John Kasich’s plan to shift more pension costs to public workers would throw the Ohio Public Employee Retirement System and the State Teachers Retirement System out of compliance with a state law that the pension fund can pay all its liabilities over a 30-year window.

Kasich’s budget proposal includes making public employees contribute 12 percent of their wages toward their pensions, up from 10 percent, and then reducing the amount that state and local governments have to pay by 2 percentage points.

But OPERS officials said, “The change to a 12/12 contribution rate and the potential loss of statewide public-sector jobs would actuarially increase the OPERS amortization period to a minimum of 36.5 years, assuming all of the proposed OPERS plan design changes are enacted.”

STRS estimates that the change to 12/12 would bump its funding period to 45.6 years.

The OPERS and STRS boards approved changes to shore up their fiscal positions. The pension reform bill is expected to be approved around the same time as Kasich’s budget bill at the end of June.

OPERS includes 537,000 workers, retirees and beneficiaries while STRS includes 317,000.

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Comments

By ddc

March 28, 2011 11:12 PM | Link to this

As sad as it is to me to listen to so many people bashing the very people we depend on for a safe and educated society, it amazes me how successfully those with the real money in this country have pitted us workers of all kinds against each other to keep us from attacking the real culprits of the economic downfall, the CEOs, Wall Street greed, and bankers. These are the people who have written the rules that we all have to play by just to survive. They take our money, juggle it around in ways most of us don’t understand so that somehow they end up 95% and we are fighting just to feed our families. Public workers, private sector employees, we are all in this together. We are all paying our share of taxes to keep this country functioning while huge corporations are making record profits and NOT PAYING TAXES AT ALL. How do they get away with it? Because they scare us with threats that they will be forced to make things worse if we don’t capitulate to their demands of obscenely high salaries and bonuses. For thirty years they have convinced Americans that if we give them more and more they will in turn hire more workers and build bigger businesses that will help the country grow. Why do we believe this when what they have done instead is make all workers put in more hours and work the jobs that were once done by two and three people? All so that we can drool over their lavish lifestyles and hope to join them with a win in the lottery. Are any of these CEOs braver than a firefighter and willing risk their lives to save yours? Are any of these bankers worth 200 times what a teacher is worth? We need to quit fighting amongst ourselves and feeding the demands of greed. Taxes are not bad or evil. Public employees are not bad or evil. Obscene greed and lust for power are the problems we need to be fighting against. Not each other.

By Tester

March 26, 2011 1:05 PM | Link to this

I am a government employee in Ohio with a Master’s Degree, Bachelor’s Degree, a license and several certifications and make $14.00 per hour. The only benefit I get is the OPERS retirement. I am not complaining because I do get a retirement, but I would definitely make much more money in the private sector than the public sector.

By tester

March 26, 2011 12:56 PM | Link to this

Testing first.

By rmh70

March 23, 2011 1:45 PM | Link to this

@guitarsteve: “throw into poverty”? Really? Are you kidding? Give me a break. I’m really tired of the “worked for lower wages than those in the private sector.” WHO exactly FORCED them into their job? Is there a caste system here in the USA I wasn’t aware of? If they were unaware of what the job entailed before they started and it’s harder/pays less for what they have to do…they can find something else. NO ONE is STOPPING them. I’m tired of the convenient forgetfulness that public worker’s salaries/benefits/pensions are paid by taxing EVERYONE. What happens when you don’t pay taxes? Oh, that’s right, you get nailed. Times change, situations change…to expect that everyone else must pick up the majority of the tab for the public workers, when they, themselves, have to deal with changing job situations, layoffs, contract changes, no raises, pay cuts, increased property taxes, etc., is beyond ridiculous. I’ve been laid off 3 times in 17 years. I’ve moved to 2 states to find jobs. There are no guarantees in this world. None. Stop whining, get out of fantasy land, and face reality – THAT is my point. When the opportunity to leave my current employer/contract comes…I’ll take it. I LIKE MY JOB, but the “employment situation”…I DON’T like it.

By guitarsteve

March 23, 2011 10:13 AM | Link to this

@rmh70 It sounds like you have a crappy job. You should not be so angry at public employees. You are not being their bank account. You are being your EMPLOYER’S bank account. You are getting screwed by your employer, not the public employees. Your taxes pay for those people, who you want to throw into poverty, to protect you against crime and fire, collect your trash, etc. When they were hired, the pension and benefits are what they agreed to in exchange for doing these jobs. They have made concessions as the economy has worsened, and have generally worked for lower wages than those in the private sector. You’re the one who doesn’t get it.

By surviving

March 22, 2011 4:29 PM | Link to this

Did they fail to mention that because some public employees have retired (and many are not being replaced), the public employees left are doing those jobs. We are skipping our lunches, coming in early, staying late (and by the way, it’s not overtime since the economy is so bad… we choose to do this or choose to be miserable at work because of the stress level of the work to be done) and doing the jobs of 2 sometimes 3 people and continue to bust our butt because we have a job. My husband & I spend $700 a month in gas just to get back & forth to work while many people are sitting at home doing nothing. Let’s focus on the welfare system that’s so great where people get $500+ in food stamps, unemployment, free healthcare while I work 45 hours a week for the pay of 40. Why don’t we try to fix the welfare system instead of trying to fix something that’s working. Why not instead of just handing out foodstamps and “financial assistance” to those who choose not to work, why not make them work for it. Ya know, if they get foodstamps, they should be working somewhere for it. Maybe if ones on foodstamps, they should work at the grocery store (and not get paid - use the foodstamps as pay) while they check people out…how bout they earn them for once instead of getting them “handed to them”. While my husband and I watch every dime to provide for our children, the gov’t continues to give the same people foodstamps, free lunch, unemployment & or “cash assistance” for doing NOTHING. THen you want to gripe about the retirement that I earn. I put my time in, I pay taxes to 2 cities. I pay for SS, yet won’t receive any because I don’t have quite enough hours in the private sector. I’m so tired of so much money going to those not working. Look… if you’ve had a job for years and something happened and you need it, I’m not talking about you. i’m talking about those who are lazy and continue to take and take and take and live better than the working class. And what about the fact that I couldnt even borrow against my pension when my family had a hardship bcz it was OPERS. Too bad, I had to figure it out on my own….Tired of the lazy getting back $10 000 in taxes when they didn’t work that much when I busted my butt, had taxes taken out all along and still had to pay state. It’s frustrating to all of us.

By Phase Out OPERS

March 22, 2011 4:02 PM | Link to this

Other than government workers, who in the world has a pension any more? How about phasing out OPERS and just pay the workers enough to save for their own retirement through traditional systems like a 401K? Enough of this “30 years and done” mentaility. Who in the private sector only has to work for 30 years before collecting a respectable retirement check for the next 30-40 years?!?! It’s nuts when I hear someone (usually a govt worker) who is 50 years old talk about retiring. And for what it’s worth, I just got a state job but I opted OUT of OPERS.

By rmh70

March 22, 2011 12:58 PM | Link to this

Let’s see…I work in the private sector, as “outsourced labor” for a world renown company in Kettering, OH. The contract I HAD TO sign to KEEP my job stated this: 0 sick time. 0 vacation if I take medical insurance (I pay 50% - currently $56/week and set to go up another $18/week this month - i.e. not a “Cadillac” plan). I have a 401k that I get $500 employer contributions to IF I put in $2000/yr and only AFTER 5 years employment (I can only contribute 10%). I get 5 paid holidays. No bonuses. No perks. And oh yes, I NEVER, EVER will get any sort of raise…EVER!!!! Public sector does pay taxes…but you sure as heck don’t pay enough taxes to fund your jobs/benefits! I’m tired of funding a SMALL PERCENTAGE of the UNION-CONTROLLED MIDDLE CLASS’S retirement through my own hard earned pay!! So KMA, stop your whining, wake up to reality, and go do your cherry, WELL PAID, tax payer-funded jobs!!! I’d love to say more, but you people just don’t get it! I’m tired of being YOUR bank account!!!

By dave

March 22, 2011 12:56 PM | Link to this

The bottom line is the governor is not making the tough choices. His idea of balancing the budget is cutting local governments and schools. Those people are the ones that will have to make the tough choices of what jobs to cut or to try to raise taxes. Why aren’t we cutting more programs across the board. It seems that the brunt of the cuts are going to affect those that work at the local level. If the private sector thinks they have been unfairly treated, wait until the public sector loses jobs and income. I fear the private sector will be hit again. The way things are going, it makes you wonder why a person wants to work hard. Just sit back, do nothing and let the state pay for you to live.

By Dave

March 22, 2011 12:17 PM | Link to this

Kasich will delay sentate bill 5 until after April 12th so it cannot be placed as a referendum in November 2011

By tired of it.

March 22, 2011 11:50 AM | Link to this

everyone should do something to help balance ohios budget. calling names wont balance it. just busting unions wont balance it either.

By Backbone

March 22, 2011 9:11 AM | Link to this

All the public workers cry about their lack of benefits/ retirement…Is this what your Unions have done for you? I Find it very strange all these people who on one hand claim they would have been screwed if they were employed in the private sector, do not find a problem with unions who pour millions into Democratic political campaigns while being forced to pay more and more out of pocket for benefits? Don’t tell me it come from other funds, its all your $$. Are there other sources of union income than dues? Politicians/Unions have positioned themselves by igniting class warfare. Who benefits the most by having public and private sector employees pointing the finger of blame at each other. I find it very interesting that I never read posts from union members complaining about this. Its your $$!! Unions have always had an incestuous relationship with the Democratic party, that led directly to what we see today.

By Tammy

March 22, 2011 8:22 AM | Link to this

You go Kasich.Love ya.

By Tammy

March 22, 2011 8:21 AM | Link to this

You go Kasich.Love ya.

By Still griping?

March 22, 2011 8:20 AM | Link to this

Watching you complainers gripe AGAIN. Take your lick in’s, greedy,it is long overdo.

By Union greed denied

March 22, 2011 8:17 AM | Link to this

Kasich is balancing the budget of bankrupt Ohio.Anyone complaining about that must have caused the problem. Think about it.

By Retired Sgt

March 22, 2011 8:15 AM | Link to this

Max, you are correct. In my case, as well as many others who are entitled to SS benefits after retirement (do to previous and post public employment) my SS benefits will only be 40% of what everyone else gets, even though I will have paid into the system and should be entitled to full benefits. things some people wont tell you..

By To tired of it

March 22, 2011 8:02 AM | Link to this

You are ignorant or just a liar. Kasich is targeting the guilty parties. Union greed has taken Ohio under as it has any other state where the selfish have operated unleashed. Things are changing union thugs. Stop your whining.

By Reality

March 22, 2011 7:56 AM | Link to this

@Boo Hoo- Your employer pays 12.2% towards your retirement between social security and 401k match and you think it falls short. This proposal calls for public employers to pay less than your bosses do. Race to the bottom!

By tired of it.

March 22, 2011 7:41 AM | Link to this

john kasich and his republican cronies are beating the wrong people over the head over ohios budget problems it is not the fault of ohios state workers.

By max

March 22, 2011 6:29 AM | Link to this

And the one thing that Retired Sgt forgot to mention is that a spouse of a public employee has their SS benefit reduced significantly. So - my SS that I paid into and have enough quarters to get before I became a teacher, I don’t get all of it - it goes to pay for others’ benefits. When my spouse dies, I only get a percentage of their death benefit. AND btw - my 403B account took a hit just like others 401Ks - get the facts people.

By paul

March 22, 2011 5:53 AM | Link to this

All one has to do is read the post from “quit whining” to understand how republican misinformation, lies and spin lands on the low information sheeple of Ohio. Just goes to show how much effect their constant spin works on these kind of people. Not only is it sad but its the root cause that empowers garbage like kasick, boehner and portman to get into power to do their dirty work then we all suffer. This dreg probably cheered on both bush’s wars, tax cuts for millionaires and billionaires yet thinks the problem is a state worker making 24k to 60k a year (while he sits in his trailor) He probably thinks its a good thing and a workers fault that all our manufacturing jobs are now overseas. Its why were losing against China and India, its why we cant pay our teachers but we sure dont have a problem dropping a million dollar bomb for no good reason whatsoever. Its why our children are failing and our enviornment will go to hell in a hand basket. Its why wall street banksters can walk away with 400 million dollar bonuses, lose our pensions and savings then they want to “fix it” on the very backs of the people that have to endure their failed and corrupt actions. He also probably believes Saddam had something to do with 9-11 and that Obama wasnt born in Hawaii and that BP was the victim in the Gulf. News flash, the republicans de-regulated the banking industry that allowed the last wall street crash, the republicans de-regulated offshore drilling and reduced safety standards to less than that of a third world country and turned the MMS into a crck/whr house. The republicans are the ones that filibustered the legislation that would have rewarded businesses that brought them back to the United States but I dont want to confuse any of you righties with the facts or reality so go back and watch some more faux noise and continue the dumbing down process. Maybe Hannity will come and save you or druggie limpbaugh will loan you some of his meds.

By RETIRED SGT

March 22, 2011 5:17 AM | Link to this

Obviously some people dont understand how public employee pensions work. Let me try to explain it to you: #1: Public employees are taxpayers too. Not only do they pay into their salaries through the same taxes as the “private sector workers”, they also contribute to their pensions (Currently at a 10% gross pay, soon to be 12.5%). #2; Once they reach a minimum of 25/30 years service they can retire, at a 60% pension, that is still taxed, so, you are bringing home about 42% of what you were earning). #3- There is no subsidized health care for retirees. They are responsible for their own. They can get it through the pension plan (STRS, OP&F etc, but it works like COBRA insurance, and is very expensive). Anyone who claims retirees get free healthcare at public expense is lying. So, in other words, a public employee, making $60,000/yr at retirement, would receive $36,000/yr pension, after taxes about $26,000, then pay for their own healthcare with that. (Through pension system, about $800/mo). All that for taking care of your kids for 25-30 years, fighting fires, policing your streets, working mids, weekends, holidays, etc). If anyone thinks that is a “lavish” pension plan, you are either delusional, stupid or insane..

By Quit Whining!!!!

March 22, 2011 12:07 AM | Link to this

The private sector makes up 88% of Ohio’s workforce. The middle class worker is sick and tired of paying for these gold plated entitlements for the public sector, when they can barely make ends meet in this recession. I am so sick of idle threats and whining when the majority of middle class, merit-based, workers spoke in November. Grow up and get over it!!!! I think Kasich hasn’t gone far enough……remember when Reagan fired all the air traffic controllers for insubordination????? You ought to feel lucky you have a job when so many Ohioians are unemployed. Try telling a potential employer that you demand a cost of living raise and a step raise every year, minimal contributions from you, for health insurance and pension, banked sick and holiday pay … guaranteed. Oh yes, your employer cannot base any of these benefits on your job performance. It must be guaranteed!!!! Does this make any sense????

By Boo Hoo

March 21, 2011 11:47 PM | Link to this

Pension Who gets pensions anymore. I have to save to 401k on my own dime. I try to save max allowed 12 percent company matches up to 6 percent. Plus no long term health care. No way I can retire at 50 like some folks. I do not get comp time or overtime. Work my butt off everyday. Why should a taxpayer like me have to pay for someone else’s pension.

By Steve

March 21, 2011 11:20 PM | Link to this

Kasich better hurry and make as many changes against public employee retirement and collective bargaining powers since he will only be in office for one-term. His ignorance will soon result in political suicide with power being returned to the Democrats in addition to referendums being placed on the Ohio Ballot for voters to undo many of his “budget saving improvements.”

By Lulu51

March 21, 2011 10:57 PM | Link to this

Well folks John Kasich told everyone his plans and people still supported him. He has no idea of how his budget changes will effect state, county and local government, let alone the impact of individuals who have dedicated their lifeto serve the public. This country is in a mess because of career politicians who have complicated publice law and wasted funds for duplicate programs. Now lets see these same politicians reap the same changes to save tax dollars!

By moose

March 21, 2011 4:08 PM | Link to this

Wow. Wow. ‘Private sector’ has had to ‘endure’. I believe you honestly. But so have other OPERS retirees, workers, etc. Do you even know who these people are? They work in schools, colleges, and the like, and they don’t make nearly as much as you think. As for ‘CHagras’, these people who are being ‘taxed’ with their pensions being withheld even more-and, BTW, losing even more of their pension in the future due to less money being given back to them due to FURTHER cutbacks ALREADY in place due to prior concessions-where are you getting your indo? Probably from the ultra-rich. The people here, within OPERS, are not taking advantage of taxpayers. They are barely making it in retirement-if they ARE making it in retirement. The group of leaders we have in Ohio are really putting the screws to people who have worked hard in our state for decades. What a shame. And they do not care.

By CHagras

March 21, 2011 3:39 PM | Link to this

And all the public sector “workers” are upset because they can’t leech as much money from the taxpayers as they used to. Moochers.

By msm

March 21, 2011 3:33 PM | Link to this

OPERS has been the only pension plan working for more than a decade to bring sustainable change. Employee amounts have increase (we pay 6% more than your social security folks do, fyi), health benefits and benefit formulas have been changed for new and midcareer employees, while not penalizing those near or at retirement. It is unnecessary to hurt us even more. Just because the private sector has been hurting, there’s no reason to penalize a system that works. I’ve had pay cuts, furloughs, and pay freezes for the past 4 years. Don’t tell me I don’t pay my share.

By private sector

March 21, 2011 1:35 PM | Link to this

Interesting to me that there is a backlash against anyone proposing changes in public employee comp, while many of us in the private sector have endured the economic recession.

By Retired Sgt

March 21, 2011 12:49 PM | Link to this

The increase of employee “pay-in” has been discussed for the last 1.5 years, and was approved by most of the pension systems in Ohio. Where this plan deviates from the proposal is that employERS would have a reduction, while the employEES paid 2.5% more. For the plan to work, there can not be a reduction, but employees would have pay 12.5% while the employer stays the same.

By Marv

March 21, 2011 12:41 PM | Link to this

The change to 12/12 has nothing to do with the problem. It is the potential loss of statewide public sector jobs that would throw things out of whack. Or am I reading this article wrong?

By s

March 21, 2011 12:36 PM | Link to this

He did not do his homework before he decided to make stupid changes. A man of his statue should have crossed all hi “t” and “i” before opening his mouth. Not what is he going to do?

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