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Ohio Passes Wide-Ranging Pension Reforms

Monday, 17 Sep 2012 10:12 PM

By Sandy Fitzgerald

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Public workers in Ohio will face higher pension contribution rates and higher retirement age requirements through legislation approved Wednesday.
 
The pension reform package approved by a bipartisan vote consists of five bills including one for each state retirement system, reports the Cleveland Plain Dealer.
 
Republican Gov. John Kasich is expected to sign the bills.
 
All five bills received unanimous support in the Senate, and only one House member voted against it.
 
The changes mean increased pension contributions for teachers, police officers, and firefighters. It also raises retirement eligibility ages, sets cost-of-living guidelines, and establishes a new formula for calculating benefits.
 
Current retirees are not expected to be impacted.
 
State leaders have pushed for pension reform since 2009, because longer life spans and poor investments have led to higher costs for the state. However, lawmakers said more work still needs to be done to solve all the problems.
 

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