A year or so ago the five public employee systems in Ohio responded to a request for legislators to recommend changes to their programs in order to address the fiscal health of each system in light of substantial loss in value experienced by the investment portfolio of each trust fund. What happened to those recommendations?
The really short answer is: nothing.
A little longer explanation is that the legislature's response to the recommended changes is indicative of most of this entire session of the Ohio General Assembly that began its two-year duties at the beginning of 2009. Dysfunction has been the best word to describe much of the dynamic of the current session. In this case, none of the changes that need to be made to bring the systems into actuarial balance are going to be popular. Like the looming state budget operating deficit, this problem is being kicked down the road for someone else to deal with in the future.
Much more could be brought out in explaining this situation, but for now, I am offering a chart prepared last year by the Ohio Retirement Study Council that outlines the proposals made by each of the retirement systems. Some of the changes do not require legislative action, but many of them do. You can download the file at this link: Pension Recommendation Outline