COLUMBUS House, Senate voting on rival bills to reform public pension systems

The Senate version doesn't include the 'buy Ohio' provisions.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- The House and Senate were poised to vote today on rival bills that would reform the public pension systems.
And, in a nod to state Treasurer Joseph Deters, the House included a provision in its bill that would give the state treasurer, as part of being placed on the public pension boards, the power to appoint the executive directors of the state's five public pension systems.
One lawmaker said Wednesday that each legislative chamber will consider its own proposal and sort things out later, hopefully before the GOP-led Legislature recesses next month for the year.
"We're going to do our own thing. ... then we'll try to mesh it later," said state Rep. Charles Blasdel, an East Liverpool Republican and chairman of the House Banking, Pensions & amp; Securities Committee that unanimously approved the House bill.
The House bill, sponsored by state Rep. Michelle Schneider, a Cincinnati Republican, would change the makeup of the boards overseeing the Ohio Public Employees Retirement System, the Police and Fire Pension Fund, the State Teachers Retirement System, the School Employees Retirement System and the Highway Patrol Retirement System.
Provisions
The House bill would also specify that 70 percent of the investment trades by the retirement systems be carried out by Ohio companies that meet certain requirements and that 50 percent of the pension funds managed outside the retirement systems be handled by Ohio firms that meet certain requirements.
The Senate version is sponsored by state Sen. Lynn R. Wachtmann, a Napoleon Republican, but it doesn't include the so-called "Buy Ohio" provisions.
"This is a governance bill. Those are not governance issues," Wachtmann said. "We're pretty adamant about those things. We should deal with that in separate legislation," Wachtmann said.
The "Buy Ohio" provisions also drew opposition from at least one pension system.
"We're certainly not opposed to doing business in Ohio," said Damon Asbury, interim director of the 400,000-member State Teachers Retirement System.
"We do business with Ohio companies where we believe it's cost effective," Asbury said. "We don't believe in mandates."
"There needs to be someone accountable to the citizens of this state," said Deters. "And I believe the one statewide official who should be accountable is the one who is solely responsible for the investment and safekeeping of public funds -- the treasurer of state."
Comparison
The bills have provisions requiring public pension board members and employees whose jobs deal with investment matters to file financial disclosure statements with the state.
Both also have provisions requiring candidates running for the pension boards to file campaign contribution and expense reports with state officials.
Orest Holubec, a spokesman for Republican Gov. Bob Taft, said the governor is examining closely the so-called "Buy Ohio" provisions. Taft wants a pension reform bill on his desk by the end of the year, Holubec said.
State officials moved to reform the public pension systems after highly-publicized problems at two systems.
Earlier this year, Herb Dyer, then-executive director of the State Teachers Retirement System, resigned after criticism was leveled at him and the STRS board amid published reports of large bonuses and what some have called lavish spending.
STRS investments lost at least $12 billion, and health benefits for retirees were cut.
In addition, the Ohio Police and Fire Pension Fund has come under fire after recent published reports revealed that the pension fund spent more than $612,000 since 1998 on board members' travel and expenses in and out of state.