Landmark Pension Reform Heads to Governor

(Columbus)—The Ohio Senate concurred today with overwhelming bipartisan support to House changes regarding five landmark pension reform bills that strengthen and protect the retirement benefits for nearly 1.8 million Ohioans.  The legislation—jointly sponsored by Senate President Tom Niehaus (R-New Richmond) and Senate Minority Leader Eric H. Kearney (D-Cincinnati)—passed the Ohio House of Representatives earlier today.

“Due to the demands of a growing retirement population, rising health care costs and a struggling economy, this legislation responsibly addresses the threat of insolvency and avoids the long-term financial crisis emerging in other states,” said Senator Niehaus.

The pension bills are the result of a collaborative process involving the pension systems and stakeholders.  Due to the economic recession and a growing number of retirees, Ohio’s five public pension systems needed to make adjustments to meet their financial obligations and ensure long-term stability.  For example, the Ohio Public Employees Retirement System estimates it has been losing nearly $1 million per day in potential savings while it waited for the General Assembly to act.

“Today we have protected the retirement benefits of nearly 1.8 million Ohioans by passing long over due pension reform,” said Senator Kearney. “These pension bills show what the General Assembly can accomplish by working together in a bipartisan manner. Not only do the reforms strengthen our public pension systems, but the changes do not require additional tax dollars.”

The Senate originally passed the legislation in May, but because of minor changes made to the bills in the Ohio House a concurrence vote was necessary.  The legislation now goes to Governor Kasich for his signature.

The changes to the pension systems take effect January 7, 2013.