Decreased Employer Contributions to Pensions Removed from Ohio Bill

April 29, 2011 ( - The proposed Ohio state budget bill no longer includes language that would set the pension contributions for public employers and their employees to 12% from each.

The State Teachers Retirement System of Ohio said its proposed pension reform plan calls for a 3% increase in member contributions, to 13% from 10%, and no change in the current 14% employer contributions as a way to help the pension fund meet the 30-year funding requirement.  According to a press release, STRS Ohio was on record as opposing the 12-and-12 scenario, noting that the resulting decrease in revenue would require additional cuts in benefits for STRS Ohio’s active members and retirees and/or even more in contributions from members.    

The System said this recent action now enables any discussion of contributions to be held within the context of the pension reform package proposed by the five Ohio statewide public pension systems.