OPERS wants grandfathering for their "current" retirees...why not STRS?
From John Curry, July 13, 2010
The summary below came from the OFT website wherein they relate summaries of several Ohio pension systems' recommendations to the Ohio Retirement Study Council. Notice how OPERS is recommending the grandfathering of the 3% COLA for their current retirees? They also considered retirees when they initiated the 3 tier scale for healthcare premiums for their retirees several years ago (something STRS did not)! Pay particular attention to what is highlighted in yellow. John
The text below was taken from the OFT website today - here is the link:
P.S. Why hasn't ORTA pushed for this "grandfathering" to be included in the STRS recommendations to the Ohio Retirement Study Council?
Ohio Federation of Teachers, AFT, AFL-CIO
OPERS special report Jan 2010
Special Update on the Ohio Public Employee Retirement System January 2010
During the economic downturn of the last two years, Ohio's public pension systems have suffered investment losses that threaten the stability of the systems. As a result, the Ohio Retirement Study Council has called for the systems to design pension reform plans that were due last September. Two of the systems – PERS and SERS - are still below the 30 year funding period required by law, but submitted plans to further strengthen their longterm stability.
The Ohio Public Employee Retirement System has already, over the last few years, made some changes to address the fund’s stability and make health care a viable option for its retirees. The benefit changes submitted to the ORSC would need approval of the legislature and include the following:
Age & Service Eligibility - 32 years of service, minimum age 55 or age 67 with five years of service for an unreduced pension. For a reduced pension, retirement at age 57 with 25 years of service or age 62 with five years of service.
- Benefit Formula – Maintain the current 2.2% x Final Average Salary (FAS) but increase the time frame that the multiplier increases to 2.5% from 30 years of service to 35 years.
- Final Average Salary (FAS) – Change the FAS calculation from the three highest calendar years of earnings to the five highest calendar years of earnings.
- Cost of Living Adjustment (COLA) – Replace the current 3% simple COLA with a simple COLA equal to the change in the Consumer Price Index up to 3%. This change would not apply to current OPERS retirees.
- Contribution Rate – No change in the current contribution rates, which are Members (10%) and Employers (14%).
posted by Kathie Bracy at 2:03 PM
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