OHIO Taft signs law to reform public pension systems

Questionable spending prompted the legislation.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- A measure to reform governance and other issues related to Ohio's five public-employee pension systems will bolster the public's perception of the institutions, Gov. Bob Taft says.
Taft, a Republican, signed into law Wednesday the public pensions reform measure sponsored by state Sen. Lynn Wachtmann, a Napoleon Republican.
Public-pension fund reform became a hot topic last year amid reports of lavish spending on new offices, travel, artwork, salaries and bonuses at the State Teachers Retirement System and questionable spending at the Ohio Police and Fire Pension Fund at a time when assets were declining and member benefits were being reduced.
The new law would expand the membership of boards for four of the five public pension funds and would place investment personnel on each of the boards.
Some details
According to an analysis of the bill, the Public Employees Retirement System board would increase to 11 members from nine and would be made up of an investment official appointed by the state treasurer, a Department of Administrative Services designee, five employee members, two retirees and two investment experts.
Under the bill, the Ohio Police and Fire Pension Fund board would remain at nine members and would include a state treasurer's investment designee, four employee members, two retirees and two investment experts.
The State Teachers Retirement System board would go to 11 members from nine and would include the state schools superintendent, five employee members, two retirees in addition to the treasurer's designee and two investment experts, under the measure.
The School Employees Retirement System board would be expanded to nine members from seven and would include four employee members, two retirees in addition to the treasurer's and investment experts.
And finally, under the new law, the Ohio Highway Patrol Retirement System board would include the highway patrol superintendent or the superintendent Department of Public Safety, five employee members, two retirees in addition to the treasurers investment designee and two investment experts.
Other requirements
The bill would also require:
UCandidates for the board and campaign committees file statements detailing contributions and expenditures.
UThe boards to review their travel and compensation policies.
UBoard members who are convicted of or plead guilty to a felony or theft offense ineligible for board elections.
The new law takes effect 90 days after it is filed with Ohio Secretary of State.