CORE's Nancy Boomhower says she 'opposes the cost-of-living adjustments' but it appears ORTA's Karen doesn't?

From John Curry, March 24, 2011

Thank you, Nancy, you are on OUR side!

John

HB69 - STATE RETIREMENT SYSTEMS (Wachtmann L) Regarding the state retirement systems.

HOUSE HEALTH AND AGING RETIREMENT AND PENSIONS SUBCOMMITTEE Rep. Schuring: 614-752-2438 Wed., Mar. 23, 2011

Karen Butt, a retired teacher from Johnstown who testified on behalf of the Ohio Retired Teachers Association, said her group supports the legislation, with the understanding that all affected groups need to contribute to help the State Teachers Retirement System retain solvency. She emphasized the benefits of having a defined benefit plan rather than a defined contribution plan, including that retirees can't outlive their savings and thus stay off public assistance, and the benefits of pooling risk and professional asset management.

Nancy Boomhower, a retired teacher from Medina County, said she supports some elements of the bill but opposes others. She said she understands that changes to retirement eligibility age, delays in the start of cost-of-living adjustments and changes to final average salary calculations all make sense as ways to help ensure system solvency in light of longer life expectancy. But she said she opposes reducing cost-of-living adjustments, saying it will only exacerbate a current "rich get richer" situation whereby the percentage rate of cost-of-living adjustments grants more benefits to higher-pension teachers. She instead proposed paying the same flat amount in cost-of-living increases to all teachers who worked the same number of years. "They all pay the same price for a loaf of bread," she said. Boomhower also reminded committee members that public employee retirees don't collect Social Security and thus can't rely on it as a supplement to their retirement savings as people with private sector pensions can.

(Summary of a Hannah News Service report)