Bipartisan Pension Bill Passes Ohio House Amid Concerns from Municipalities
The Ohio House has passed House Bill 296, a pension funding measure aimed at bolstering the Ohio Police and Fire pension fund by an additional $80 million annually. The bill received bipartisan support, with 23 Democrats and 43 Republicans voting in favor. However, cities across Ohio are sounding alarms over the financial burden it could impose.
Sponsored by Rep. Cindy Abrams (R-Hamilton), a former police officer, the legislation mandates a rise in municipal contributions to the fund for police from 19.5% to 24% over six years, aligning it with the rate for firefighters. It also raises employee contributions from 12.25% to 12.5% starting in 2030. Rep. Abrams emphasized the urgency of the bill, noting that the pension fund has a longstanding shortfall of about $15 million stemming from a financial crisis in 1967.
Critics, including municipal officials, argue that the increased contributions could lead to drastic outcomes such as layoffs, service reductions, and potential tax hikes. A push for amendments to provide state funding assistance to cities was rejected. Rep. Beryl Brown Piccolantonio (D-Gahanna) voiced that this legislation should initiate further discussions on local community support.
As the Senate session wraps up this month, time is a pressing concern. Senate President Matt Huffman (R-Lima) acknowledged the challenge of passing the bill before the legislative session ends, indicating there are currently no committee meetings scheduled for the next week.
The bill’s future remains uncertain as stakeholders express the need for a comprehensive approach to address the impending pension crisis while ensuring support for local municipalities.
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