Pension changes may swell Ohio teacher retirements

A wave of teacher retirements in Ohio could be coming in the next few months.
Associated Press
Jan 21, 2013

 

Changes in retirement rules will give teachers across the state a strong incentive to retire by July 1, The Columbus Dispatch reported.

Teachers who retire in the first half of 2013 will begin receiving 2 percent cost-of-living increases to their pensions in 2015 while those who don't must wait until 2018 to see increases. After that, retirees will need to wait five years for their first cost-of-living increase.

Similar changes to the Ohio Public Employees Retirement System led to a big number of retirements at the end of 2012, according to the system's numbers.

"I don't want to portray it as the sky is falling, but it's certainly a management issue that people will have to deal with," said David Varda, executive director of the Ohio Association for School Business Officials.

Another surge in retirements could come by 2015 when age and years-of-service requirements for full benefits will gradually rise.

"It's something we have to deal with over the next two to three years," Varda told the newspaper.

Officials with the School Employees Retirement System and the State Teachers Retirement System say they'll have a good idea about the potential impact on retirements in a few months.

Counseling appointments with the State Teachers Retirement System office were up from last year, said spokesman Nick Treneff.

"Since the vast majority of teachers retire at the end of the school year, it's difficult to project just yet," he said.

The system saw a surge in retirements eight years ago when the economy was more stable, he said. But the number of retirees fell when the economy began to tumble in 2008.

"As some of those baby boomers are aging into retirement age, they are going when they can afford to do it," Treneff said.

Dick and Ann Noble, both teachers at Groveport Madison outside Columbus, said the pension changes forced their hands.

"I could teach for another five years," said Dick Noble, 56. "Financially, it's the best move for me and my family."

 

Comments

CAST THE FIRST STONE

so they will retire and then be rehired to the same job. such a sad system

Fromthe419

If they retire they should stay retired and give the next generation of workers a chance. I might add that something needs to be done about the entire pension system for new teachers and new federal and state employees...a 401k and Social Security for everyone just like the private sector has. I guarantee you state and federal law makers will fix it if they have to retire on it.

wetsu

I believe you are correct about it having to start with state and federal law makers. Otherwise we will continue to spin our wheels. They have it set up now that they are perpetually taken care of, they have no motivation to change things. Their corporate and lobbyist masters pull the strings with our money. You can bet that the crap that led to the financial melt down would be addressed as well since their financial well-being would be directly tied to the ongoing health of the system.

bayshore

Since 1981 all new Federal employees fall under the Federal Retirement System (FERS). Unlike the previous Civil Service system, they pay Social Security taxes, contribute towards their retirement pension and have the option of investing in Thrift Savings accounts which are very similar to private sector 401k accounts.

donutshopguy

Administrators are the largest group of double dippers in the education field.

wetsu

True as well. It's like a fraternity. The ones who don't get rehired as supers pull strings to get jobs at ESC's. Places like the ESC's, the ODE, and STRS are the ones who need investigation. Take a gander at what the people at the STRS make and you'll get a feel for the real root of the problem.

reader1

Come on. How many of the hundreds of teachers who retire go back and double dip? It's the administrators! In the public service arena it is also usually the administrators. Names that come to mind are Kevin Baxter and the Cleveland councilman in the news recently.

Justme...

Don't blame the teachers and administrators. Blame the system that makes it feasable and financially beneficial to districts for them to retire when they are still able to work. To me the problem isn't that they come back, its that they were able to retire so young in the first place.

jon491

Don't forget about that woman that is suing because she can't stand young kids, but is still getting 89% pay in retirement .

CAST THE FIRST STONE

the unions are the ones that decide its ok to do this. they are the judge and the jury that is the problem

Pterocarya frax...

Perhaps you should check your facts, You are wrong.

CAST THE FIRST STONE

if i was wrong you would of said why. The fact is people say it is in the contract. But who makes the contracts.yep thats who

Pterocarya frax...

Show me any cases of a teacher retiring and being rehired as a teacher. The doubledippers are all administrators. Administrators are not in the union nor governed by union rules. Also their is no union contract without a signature from management as well. You are barking up the wrong tree.

CAST THE FIRST STONE

you are wrong my wifes step dad retired with full bennys and went back and worked one more year at his same job at norwalk middle school. It is a fact i saw it. please look into it . This is why they get away with it. They fool us

wiredmama222

Anyone, not just teachers, who retire should be done with it. This entire objective of retiring and then going back to obtain another salary is just unfair to those who need a job. When you retire, that should be it. If you are collecting Social Security, they watch to see how much you make. If you go over the limit, the SS will stop your social security and you must pay back the overage. So why allow double-dippers to get a leg up?

It seems to me that once you are retired you should not get the added bonus of going back to the very same job and getting your salary all over again. It is unfair to those waiting for the very job from which you just retired.

Cost effectiveness or not, you knew this day was coming. Eventually everyone has to retire. Your bad planning should not allow you to double dip because of the economy or any other excuses.

Contango

The nice thing is that OH taxpayers are on the hook because all health and welfare benefits and COLAs are guaranteed by law.

If the pension trusts have a lousy return on investment (ROI), taxpayers get to make up any short fall - sweet!

OH needs to scrap it's defined benefit plans and go to a total defined contribution 401(k) type system.

Let the public employee take the retirement and investment risks like most private workers.

Govt. "of the union, for the union and by the union” shall not perish from this state.

eriemom

"If the pension trusts have a lousy return on investment (ROI), taxpayers get to make up any short fall - sweet! (Contango/Smith)"

When has this happened? These pensions are self funded.

Pete

Every pension relies on growth from its investments. This keeps the fund from having to bring in as much as it pays out. This helps lower the amount of money that has to be either deducted from an employees check or paid by the school board.

Here is a link: https://www.strsoh.org/about/5.html

This will give you a quick overview of how it is invested.

Contango

@ Pete:

They even invested in that "evil" Bain Capital. (Shudder)

Pete

It is always funny what a PERS or Union program invests in. They cry and whine about capitalists, then turn around and sink their money into the EXACT thing they say they despise.

They only despise them when they aren't making any money off them. If they are getting a high ROI then they don't say a word. Greed shows its ugly head in many forms.

Contango

@ eriemom:

"...government employees' pensions are guaranteed."

Found this one for ya:

http://www.dispatch.com/content/...

You'll have to do your own research if you want any more.

Maggdi

Hey where are all the union experts to explain "Featherbedding"?!!!