Senate panel likely to reject pension items

An East Liverpool lawmaker is disappointed in his colleague's plan.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- An Ohio Senate committee is expected to reject provisions in a plan passed by the Ohio House to reform the state's five major public pension systems -- provisions at least one senator calls "bad policy."
The Senate's Health, Human Services and Aging Committee is expected today to strip from a House pension reform bill a provision mandating that state pension funds execute a certain percentage of equity and fixed-income trades using an Ohio-based broker.
The Senate committee also is expected to strip provisions mandating that a certain percentage of public pension funds' externally managed assets be managed by an Ohio-based firm and provisions giving the state treasurer involvement in appointing each of the pension funds' executive directors.
"The House is continuing to demand their absolutely horrible policy of so-called 'Buy Ohio,'" said state Sen. Lynn R. Wachtmann, a Napoleon Republican and chairman of the Senate health committee.
"It would be nice to get to the point that the House comes to the realization that their policy is bad policy," Wachtmann said.
Wachtmann said he will move today to insert his Senate-passed plan to reform the pension systems into the House-passed bill, sponsored by state Rep. Michelle Schneider, a Cincinnati Republican.
The Senate passed Wachtmann's plan and the House passed Schneider's plan last year.
Found it shocking
Schneider couldn't immediately be reached to comment Monday. But another House member who's been involved with the pension-reform bill said he was shocked to hear what Wachtmann had planned to do.
"It's unfortunate," said state Rep. Charles Blasdel of East Liverpool, R-1st, chairman of the House Banking, Pensions and Securities Committee that approved Schneider's bill.
"I'm trying to come up with solutions. Like a bull in a china shop, [Wachtmann] just kind of keeps going ahead," Blasdel added.
Both the House-passed and Senate-passed bills do similar things. They both remove the state attorney general from the pension boards so that officeholders can probe problems in the systems.
But the House-passed bill contains the "Buy Ohio" provision and the provision giving the treasurer appointing authority over the pension fund managers.
The bills also would require ethics policies and changes in the composition of the fund boards.
Republican Gov. Bob Taft sent letters earlier this month to all the pension fund leaders asking them to voluntarily implement many of the reforms.
Prefers Sentate bill
Damon F. Asbury, recently appointed executive director of the State Teachers Retirement System, said STRS felt more comfortable with the Senate bill.
The pension-reform bills were proposed after published reports of questionable and excessive spending on travel, bonuses and artwork by board members and employees of STRS and the Ohio Police & amp; Fire Pension Fund.
The other three public pension funds are the Highway Patrol Retirement System, the Public Employees Retirement System and the School Employees Retirement System.