Legislators, Stop Neglecting Our Pension!
- Dean Dennis
- 4 hours ago
- 2 min read
In a non-social security state such as Ohio, the average Employer Contribution Rate exceeds 30%; Ohio's rate is 14%, less than half of the national average. The Employer Contribution Rate in Ohio has been stagnant for over 40 years.
When computing benefits, unfunded liabilities, and other variables, actuaries first examine the known cash flow. A responsible Employer Contribution Rate is vital for the financial health of any public pension system.
Ohio's Legislators have ignored the need for an employer increase for years. Our STRS investment staff can’t make up cash flow shortfalls by beating the market through investments. This is ridiculous. This thinking has teachers contributing more, working longer, and receiving less. Ohio’s legislators would never retire without inflation protection, but that is what is happening to us. In the past 5 years, inflation has eaten into purchasing power by over 20%.
It appears the only way to catch the attention of our legislators is through our vote. Let’s ensure we vote for legislators who show compassion towards teachers and don’t take us for granted. Our votes count.
Dean Dennis, Chair ORTA Executive Council
STRS Ohio has published information on their website about the Employer Rate Increase Initiative.
The State Teachers Retirement System of Ohio is seeking an increase of the employer contribution rate. Currently, employers contribute 14% of payroll to the system. The legislation provides for an increase of 0.5% each year for eight years, so that once fully realized, the employer rate would be 18%.
STRS OHIO Member Talking Points in Support of an Employer Rate Increase
STRS Ohio encourages you to join in the efforts to communicate the need to increase the employer contribution rate to the system. One way to do that is to send a letter or email to your local legislator or have a conversation. The talking points below can be used for these purposes. To locate the name and Statehouse phone number of the state representative or state senator for your area, please go to findmydistrict.ohiosos.gov. Email addresses for Ohio House and Senate members can be found on the Employer Rate Increase Initiative web page.
ORTA is assisting Wade Steen and Rudy Fichtenbaum with the attacks by Governor DeWine and Attorney General Yost. The cost to defend a person from attack by the two most powerful people in the state is tremendous. Wade and Rudy need your help! Please make a donation today to the ORTA Pension Defense Fund.
