News from STRS: House Bill 700 Could Impact STRS Ohio's Existing Defined Benefit Plan and Place Additional Burdens on Employers

December 14, 2006

During this lame-duck session of the Ohio General Assembly, a bill has been introduced by Rep. Chuck Blasdel (R-East Liverpool) that would require school boards to offer private vendor alternative retirement plans (ARPs) to new employees and those with less than five years of service credit as of the effective date of the bill. This is an expansion to all K-12 employees of the defined contribution plans currently available to full-time university faculty.

On Dec. 14, 2006, STRS Ohio provided testimony on this legislation, House Bill 700, before the House Financial Institutions, Real Estate and Securities Committee. (A copy of this testimony can be accessed on the STRS Ohio Web site at: http://www.strsoh.org/pdfs/testimony.pdf) STRS Ohio urged the Legislature to not rush this bill through, but, instead, do a thorough analysis of the impact of the bill on the majority of Ohio educators who are enrolled in STRS Ohio's Defined Benefit Plan, the employers who will have to administer multiple retirement plans, and the State of Ohio.

STRS Ohio members who would like to express their opinion about H.B. 700 are encouraged to send their comments to the legislators listed in the link below. Some of these individuals are members of the Ohio Retirement Study Council, which is the legislative oversight committee for Ohio's public pension plans. Others are members of the Senate Health and Human Services and Aging Committee. They have been included on the list because H.B. 700 may become attached to another bill that is currently being reviewed by this committee. AT THIS TIME, THERE APPEARS TO BE AN EFFORT TO HAVE SOME RESOLUTION ON THIS BILL BEFORE THE LEGISLATURE ADJOURNS NEXT TUESDAY, DEC. 19.

The list of House and Senate members' e-mail addresses and phone numbers is at: http://www.strsoh.org/whatsnew/news27.html