Mary Beth Hunter on changes in Gov. Kasich's budget bill: There will be nothing teachers can do to stop the decimation of the pensions

From Mary Beth Hunter, April 17, 2011
Subject: Kasich

Kasich seems to think that the SB5 will not be able withstand the referendum. Therefore he is making changes in the budget. This is because the budget cannot be attacked by a referendum. That is why you see this in the budget:

On April 13, Executive Director Michael Nehf submitted testimony to the House Finance and Appropriations Committee on House Bill 153, which is the state budget bill. His written remarks focused on the language in the bill that would limit the contributions for employers and employees to 12% from each. Nehf noted this change would result in the Retirement Board's proposed plan no longer meeting the 30-year funding requirement.

The board's plan maintains the current level of employer contributions at 14% and increases member contributions by 3%, from the current level of 10% to a total of 13%. The resulting decrease in revenue from the contribution scenario contained in the budget bill would require additional cuts in benefits for STRS Ohio's active members and retirees and/or even more in contributions from members. As a result, Nehf requested removal of the 12-and-12 contribution language from H.B. 153. Complete text of the testimony can be found on the STRS Ohio Web site at: https://www.strsoh.org/pdfs/Nehftestimony4132011.pdf.

There will be nothing teachers can do to stop the decimation of the pensions.

Mary Beth Hunter