Beginning in January, many Ohio public workers will face increased pension contribution rates and higher retirement-age requirements — changes included in a package of public pension reforms Ohio lawmakers approved Wednesday with bipartisan support.
The pension reform legislation — a package of five bills, one for each retirement system — is headed to Gov. John Kasich for his signature. A spokesman for Kasich, a Republican, said the governor will sign the bills.
All five bills received unanimous support in the Senate, and only one “no” vote was cast in the House of Representatives. Rep. Danny Bubp, a Republican from Adams County, voted against the bill affecting the State Teachers Retirement System.
Senate President Tom Niehaus said the changes are needed to ensure workers get the benefits they were promised.
“We know the changes are not popular, but they are necessary,” he said.
The changes will mean increased pension contributions down the line for teachers, cops and firefighters. The bills also raise retirement eligibility ages, set new guidelines for cost-of-living adjustments and establish a new formula to calculate benefits. Each system will undergo a unique combination of adjustments.
The bills, for the most part, will not affect current retirees. The reforms also do not increase pension contribution rates for public-sector employers.
Public pension funds have pushed for reform since 2009. Longer life spans and poor investment returns in recent years have contributed to the need for change.
Although Wednesday’s passage marked a step forward in overhauling the funds’ structure, legislative leaders said there is more work to be done.
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