King Kasich and the disappearing 2% from the STRS employer contribution!
From John Curry, April 7, 2011
"Included in Ohio Gov. John Kasich's two-year budget is a provision that calls for state and local government employees to pick up 2 additional percentage points toward their pensions (from 10 to 12 percent of their salaries for non safety forces) and for government agencies to pay 2 percentage points less (from 14 percent to 12 percent)."
Note from John...actives and retirees.....this additional 2% cut in employer contribution WAS NOT FACTORED INTO THE PENSION REFORM PLAN SUBMITTED TO THE OHIO RETIREMENT STUDY COUNCIL BY OHIO STRS. NOW, NEW ACTUARIAL TABLES WILL HAVE TO BE MADE AND MORE SEVERE CUTS TO BOTH ACTIVE TEACHERS AND RETIREES WILL HAVE TO BE MADE! WE CAN THANK KING KASICH FOR THIS ONE! WE HAVE BEEN THROWN UNDER THE BUS ONCE AGAIN!
WHAT MORE CUTS WILL BOTH ACTIVES AND RETIREES SEE THANKS TO THIS SWEETHEART GIFT TO OHIO'S SCHOOLS BY KING KASICH? NOT INCREASING EMPLOYERS' CONTRIBUTION RATES IS ONE THING....REDUCING THEM IS UNACCEPTABLE!
By Joe Vardon
The Kasich administration says Ohio schools would save a collective $229 million annually through the governor's proposal to shift more of the cost of pensions onto employees, offsetting some of the losses schools will suffer through the governor's proposed cuts.
Of course that also means that school employees will pick up $229 million more each year of their pension costs.
Included in Ohio Gov. John Kasich's two-year budget is a provision that calls for state and local government employees to pick up 2 additional percentage points toward their pensions (from 10 to 12 percent of their salaries for non safety forces) and for government agencies to pay 2 percentage points less (from 14 percent to 12 percent).
According to numbers released today by the Kasich administration, schools each year would save $175.5 million on teachers' pension costs and about $54 million from other school employees, once the changes were implemented.
Franklin County schools would save more than $25 million. Columbus City Schools would save $9 million through the pension shift. Southwestern City Schools would save $2.6 million and Hilliard City Schools would save $2.2 million.
Schools are set to lose $852 million in Kasich's two-year budget through dried-up stimulus funds and tax reimbursements. The pension changes would ease that blow by $458 million, leaving a net loss of $394 million.
posted by Kathie Bracy at 9:25 PM
<< Home