OPERS Article
Winter Conference of the
Ohio Staff Council of Higher Education (OSCHE)
The Winter Conference of the OSCHE was held at Columbus State Community College on January 29, 2010. Guest speakers for the meeting included Ohio Board of Regents Chancellor, Dr. Eric D. Fingerhut who provided an update on the University System of Ohio plan and other matters within the state effecting higher education. Also present were representatives from Ohio Public Employment Retirement System (O.P.E.R.S.) and representatives from School Employee Retirement System (S.E.R.S.) to supply information and answer questions concerning the proposed retirement benefit changes.
Dr. Fingerhut offered a big thank you to all the staff members to carry back to our respective schools. He stated staff continued to work through budget cuts, take on additional work due to increased enrollments and make the changeover to semesters without complaining. He appreciates what has been asked of us and thanked us for our service. He feels we are on good footing within the State because of our leadership, service and responsiveness when it comes time to ask for future funding. Dr. Fingerhut voiced that our education system is a growing enterprise for the people of Ohio. “It is the state’s greatest asset”, said Dr. Fingerhut. He pointed out Ohio services over 500,000 students per day collectively. Ohio is a model for other states. We are working on making all credits transferable within the university system, keeping tuition affordable and having access to higher education within 30 miles of your home. “We are the economic development department of Ohio”, said Dr. Fingerhut.
Debbie McCarthy, OPERS (government agency) updated everyone at the OSCHE conference on the proposed changes to our retirement plan. Debbie stated OPERS will be losing money if we continue without changes to the current plan. OPERS is proposing these changes to be ahead of the challenges. There are Ohio legislators trying to change the plan, as well as OPERS is trying to be proactive. Below is a general outline of the bill OPERS is planning to propose:
Age & Service Eligibility – Add two years to the current plan
Currently 30 years of service, at any age or age 65 with five years of service for an unreduced pension. For a reduced pension, retirement at age 55 with 25 years of service or age 60 with five years of service.
Recommended plan: 32 year of service, minimum age 55 or age 67 with five years of service for an unreduced pension. For a reduced pension, retirement at age 57 with 25 years of service or age 62 with five years of service.
Note: Members of law enforcement and public safety divisions have different age and eligibility criteria and benefit formula calculation depending on when they retire. Visit www.opers.org for details.
Benefit formula – Maintain the current 2.2% x Final Average Salary (FAS) but increase the time frame that the multiplier increases the 2.5% form 30 years of service to 35 years. Change the FAS calculation from the three highest calendar years of earnings to the five highest calendar years of earnings.
Cost of Living Adjustment (COLA) – Replace the current 3% simple COLA with a simple COLA equal to the change in the Consumer Price Index up to 3%. This change would not apply to current OPERS retirees. The current 3% COLA is a great benefit which cannot be funded for future retirees.
Contribution Rate – No change in the current contribution rates, Members (10%) and Employers (14%).
This proposal also protects healthcare coverage for the near future. Healthcare is still not guaranteed but OPERS is doing its best to continue this benefit. Visit the OPERS website, www.opers.org for complete information.