Headlines from the Ottoville (Putnam County) RTA "workshop"
From John Curry, July 11, 2009
Options for teacher pensions still ‘under consideration’
Lima.com, July 9, 2009
By Nancy Kline
By Nancy Kline
OTTOVILLE - "Under consideration" were the two big words Thursday during a workshop for retired teachers.
Hosted by the Putnam County Retired Teachers Association, more than 150 teachers and administrators from Putnam and surrounding counties attended the workshop for an update on plans for the long-term pension plan for teachers and health care funding.
Laura Ecklar, director of communications for the State Teachers Retirement System of Ohio said "everything is on the table" as the retirement board looks at options to address the reduced value of the STRS.
Options under consideration include increasing contributions, instituting a minimum retirement age, increasing the number of years used to calculate final average salary, changing cost-of-living adjustments, and changing the formula for calculating pensions.
"The state retirement system has been around for 89 years and this is the first time we have had to cut benefits," Ecklar said, attributing this to declining investment returns and increased longevity for people using the retirement plan.
Two state representatives at the meeting defended their opposition to legislating limits on bonuses paid to investors.
"I don't like the idea of paying people to lose money, but you need to keep legislatures out of it," said Rep. Bruce Goodwin, R-Defiance, referring to the proposed House Bill 177. "You don't want legislatures managing your retirement."
Rep. Lynn Wachtmann, R-Napoleon, agreed with Goodwin. Wachtmann sits on the Ohio Retirement Study Council. The ORSC helps form pension policies.
"It is in the best interest of all if you allow the board to offer bonuses to investment people," Wachtmann said, because that is how investors expect to be paid.
Ecklar said the retire-rehire practice does not affect the pension fund.
"Those who are re-employed still pay into the retirement pension with a match from their employer," she said.
Goodwin said he has introduced legislation that limits the amount an administrator could make if he retires then is rehired.
"It gives a bad perception to the public when this happens," he said, "and can be part of the reason some would vote down a school levy."
Goodwin and Wachtmann opposed Ohio Gov. Ted Strickland's proposal to use slot machines as a way to help balance the state budget and education.
"The people in this state have spoken four times during elections," Wachtmann said. "And they voted against gambling."
He also said there is a question about how much the slot machines would actually help education.
Rita Schnipke, co-vice president of the Putnam County Retired Teachers, said the workshop was planned as an informational meeting to provide updated information to teachers regarding their pensions and health care coverage.
posted by Kathie Bracy at 12:13 PM
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