State Senator Keith Faber
Stabilizing Ohio’s Public Pensions 

As a husband and father, I know first hand the importance of saving for the future. In the wake of the economic recession, it became especially evident that there are no guarantees in life and it’s never too early to plan for financial security.  As a state senator, it is my responsibility to ensure state government is doing everything it can to spend your taxpayer dollars wisely and provide solid financial footing. Too often, all levels of government over spend only to burden future generations with the obligation to repay the debt.

Due in part to the growing retirement population, rising healthcare costs, and a struggling economy, it became clear that our five state public pension funds were on a dangerous path. This path, if not corrected, would leave them underfunded and unable to fulfill the commitments that have been made to Ohio’s police, firefighters, teachers, and other public employees.
 
For example, the Ohio Public Employees Retirement System estimated that their fund was losing nearly $1 million every day due to its underfunded liabilities. The daily impact was nearly double for the Ohio Police and Fire fund, at more than $650 million annually.  For the School Employees Retirement System, the loss stood at $27 million a year. The pension fund managers sought the legislature for help and as the Chairman of the Ohio Retirement Study Council I immediately began leading the charge for reform in the Ohio Senate.
 
My sole desire in supporting Ohio’s pension fund reforms was to establish a plan that allowed the state to fulfill it’s commitment to current retirees while ensuring the longevity of the systems for future retirees without causing any additional burden to Ohio taxpayers. Acting on those goals and with the full support of each pension fund, the Ohio Senate introduced and passed the five landmark pension reform bills with unanimous, bipartisan support to provide greater retirement stability for more than 1.8 million Ohioans.
 
Each of the five bills were strategically designed by each pension fund and supported by the members of both parties. Each plan was analyzed and addressed individually as to tend to the specific needs of each of the funds’ members. While not perfect, the reform proposals are a good first step and with the reforms now headed for the Governor’s desk, the state’s retirees can rest easy knowing that their pension fund is in a much better position to continue to meet its promises.  All Ohioans can be similarly assured that the funds will be able to meet their obligations without taxpayer assistance and will be fully capable of passing financial stress tests.
 
This pension reform legislation now joins the many other initiatives that I have supported in the State Senate that work to cut red tape and make Ohio a better place to live and work. Since January 2011, the state legislature has passed bills that eliminated Ohio’s $8 billion budget deficit, reduced taxes, abolished Ohio’s death tax, and streamlined regulations. These reforms have directly attributed to Ohio’s credit rating having been upgraded. Further, they have resulted in drastic improvements to the number of employed Ohioans.
 
As always, please do not hesitate to contact my office if you have questions or concerns about any of the matters we are considering at the Statehouse.  I can be reached by phone at (614) 466-7584, by e-mail at faber@ohiosenate.gov. You can also writing me at State Senator Keith Faber, Ohio Statehouse, One Capitol Square, Columbus, Ohio 43215.  I look forward to hearing from you.

Senator Faber represents Ohio’s 12th Senate District, which includes Allen, Champaign, Mercer, Preble, and Shelby Counties, as well as portions of Auglaize and Darke Counties.  He currently serves as President Pro Tempore of the Ohio Senate. Learn more at www.ohiosenate.gov/faber.