Ohio may cut benefits for future state employees as part of public pension fix

COLUMBUS, Ohio — Ohio’s largest public-pension system might cut benefits for future employees, under a plan that’s under consideration.

The board for the Ohio Public Employees Retirement System is weighing raising the retirement age and cutting benefits for all employees hired in 2022 or later.

In a different proposal to save money on health-care costs, the OPERS board is considering shifting future retirees who haven’t yet qualified for Medicare into the Obamacare marketplaces, while giving them money to cover the premiums. The OPERS board this week also voted to freeze pensioners’ automatic cost-of-living increases for 2022 and 2023.

All the changes are meant to strengthen the pension system, which is short $24 billion of what it needs to fund its total obligations. The cost-of-living freeze, for example, would save OPERS an estimated $3.4 billion, officials said.

Read more: https://www.cleveland.com/open/2019/09/ohio-may-cut-benefits-for-future-state-employees-as-part-of-public-pension-fix.html