Ohio’s public pension system opens door to sleight of hand

Mahoning County Common Pleas Court Judge R. Scott Krichbaum is not the first public official to retire and then be “rehired” to the same position — and he won’t be the last.

That’s because Ohio’s public pension system facilitates such workplace sleight of hand — some cynical private-sector taxpayers would say shenanigans.

The system, which is shrouded in secrecy with regard to the amount of money paid out to individual retirees, is designed to give public employees the kind of windfall upon retirement — at a relatively young age — that a goodly number of workers in the private sector can only dream about.

The key to opening the monetary floodgates is the formula that is based on the average of the five highest-paid years (for a long time it was three years) of public employment, multiplied by 2.2 percent, multiplied by the number of years employed.

Thus, in Judge Krichbaum’s case, his some 30 years of working as a court bailiff, special prosecutor and a judge since 1991 means that his pension will be about $80,000.

We are unable to provide an exact amount because the pension records of public employees are not available to the employers — we, the people.

Tax dollars

This lack of transparency becomes even more egregious when you consider that the employer share of the pension contribution comes from tax dollars.

Krichbaum’s decision to retire after winning re-election in November and then to retain his seat is prompted by his belief that if he does not cash in (an appropriate expression, if ever there was one) now, he will find his benefits being diminished in the next several years.

“The spousal benefit for PERS retirees is reduced 33 percent in each of the next three years until it’s gone. My family’s financial well-being is a prime consideration.”

But why not just retire and live off the pension, and if that isn’t enough, return to private practice?

The answer Krichbaum gave has become the standard response for public officials who retire and are then “rehired:” I love what I’m doing, and I’m good at it.

Indeed, two years ago, six elected officials in Trumbull County reportedly took their retirement benefits and then returned to their jobs: Common Pleas Court Judge W. Wyatt McKay, Family Court Judge Pam Rintala, Warren Municipal Court Judge Thomas Gysegem, Sheriff Thomas Altiere, Prosecutor Dennis Watkins and county Commissioner Daniel Polivka.

The issue at that time was a change in the cost-of-living adjustment. Instead of a flat 3 percent annual increase in retirement pay, members of OPERS were to get an adjustment based on the Consumer Price Index. The CPI increase was expected to be 1 percent.

It should be clear by now that the public pension system causes otherwise seemingly honorable individuals to do things that have a stench of dishonor — and greed.

When you run for re-election and win and then retire, only to be sworn in a short time later, the public’s faith in government is diminished even more.

We have long supported Judge Krichbaum because he is an outstanding jurist who is dedicated to the law and to the proper administration of justice.

His case management has drawn the attention of the Ohio Supreme Court, which has advised his colleagues on the Common Pleas bench to follow his example.

Thus, we are left with a sense of dismay.

No, Krichbaum has done nothing wrong or illegal, but by taking advantage of the escape hatches in the pension system, he has hurt his reputation somewhat.

No challengers

When the judge filed his petitions for re-election last year, it was clear he would be around for another six-year term. That’s because no one came forward to challenge him. The absence of an opponent is an indication of the respect Krichbaum enjoys among lawyers in Mahoning County.

That said, the judge could have certainly endeared himself to the taxpayers — and to this newspaper — had he made it known early that he would be retiring at the end of his term and would then return to serve the new one.

His explanation about changes in the pension rules and his desire to protect what he earned does have a certain persuasive quality.

At the heart of this discussion about Krichbaum and others is the pension system in Ohio, which not only is shrouded in secrecy, but is fast becoming unsustainable for the employers — the taxpayers.

It’s time for a serious conversation about its future, but don’t expect that to occur in the Ohio General Assembly. Lawmakers have a vested interest in maintaining the status quo.

It will take an independent think tank, such as the Buckeye Institute, to lead a statewide discussion.