Here's an Ohio Retirement System that is protecting the least among their retired ranks with some compassion.....

Tom Rice to John Curry, April 23, 2012 
Subject: RE: COLA cut 

John, 

Good morning.  I saw your question regarding the qualifiers for older retirees and wanted to get back to you with an answer. 

Below is the proposed language contained in HB 69.  The 2012, Federal Poverty rate for a family of two is $15,130.00.  One hundred and eighty-five percent of: ($15,130.00 X 1.85) = $27,990.50. 

As it is proposed right now, OSP [Ohio State Patrol] retirees (age 65 years or older - see below) earning less than  $ 27,990.50 per year will continue to receive a 3% COLA. We feel pretty comfortable that this provision will remain in the proposed legislation. 

I hope this answers your question.  If not, please call me. 614-430-3553 or cell phone [xxx]. 

(a) For each person sixty-five years of age or older who is receiving a pension not greater than one hundred eighty-five per cent of the federal poverty level for a family of two persons, as revised annually by the United States department of health and human services in accordance with section 673(2) of the "Omnibus Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, as amended, the board shall increase the pension by three per cent. 

(b) For persons other than those described in division (B) (1) (a) of this section, the board shall increase the pension by two per cent, except that for any calendar year in which the actuarial valuation required by section 5505.12 of the Revised Code demonstrates that a period of thirty years or less is required to amortize the state highway patrol retirement system's unfunded actuarial accrued pension liabilities, the board may increase the pension to not more than three per cent. 

Take care, 
Tom 

Col. (ret.) Thomas W. Rice, Consultant 
Highway Patrol Retirement System 
614.430.3553 
trice@ohprs.org 

John Curry to the Ohio Highway Patrol Retirement System (OHPRS), April 21, 2012 
Subject: COLA cut 

I praise your organization for the compassion you have for retirees among you with the smallest pensions. I note that your April 12, 2012 posting says, and I quote, "1. Reduce the annual cost of living adjustment (COLA) from three percent to two percent with limited exceptions for our oldest retirees who receive very limited benefits." My question is, what are the qualifiers for those retired troopers to be sheltered from the COLA cut. 

Thank you, 
John Curry

From John Curry, April 26, 2012

Thanks, Tom...am clear on this issue now. It is based on their "current" retirement income rather than their initial retirement annual amount.

I think you find it interesting to know that in previous discussions with the STRS leaders by this retiree and others it was brought to the attention of myself and my fellow retirees that STRS retirees also may very well have "additional income sources" as well as their pension and that was one of the reasons given to not allow an exemption to our lowest benefits recipients. I would surmise that some your lowest pensioned retired troopers would also have additional sources of income but that your compassionate retirement system didn't use that as an excuse to ignore them.

John

From Tom Rice, April 26, 2012

John,

The $27,990.50 is the product of: $15,130.00X 185%. The 2012 Federal Poverty rate for a family of two is: $15,130.00. $15.,130.00X 1.85= $27,990.50. If our proposed legislation passes, our retirees, 65 years or older earning less than $27,990.50, would receive a 3% COLA increase.

PROPOSED LANGUAGE:
(a) For each person sixty-five years of age or older who is receiving a pension not greater than one hundred eighty-five per cent of the federal poverty level for a family of two persons, as revised annually by the United States department of health and human services in accordance with section 673(2) of the "Omnibus Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, as amended, the board shall increase the pension by three per cent.

Col. (ret.) Thomas W. Rice
Consultant Highway Patrol Retirement System
614.430.3553
trice@ohprs.org

From John Curry, April 25, 2012

Thomas,

I do have one question. It involves the $27,990.50 amount. Was this the amount of the "original pension" of the retired trooper or is this the current amount of their annual pension? Thank you.