Remove pension shroud

On Jan. 15, the State Teachers Retirement System of Ohio and the School Employees Retirement System of Ohio submitted their checkbook-level expenditure data to the Ohio Treasurer’s Office. And they will soon link their online checkbook websites to OhioCheckbook.com, the nationally recognized and highly popular transparency portal created by Treasurer Josh Mandel.

The STRS and SERS join the three other statewide public pension funds that are posting their checkbook- level expenditures online at OhioCheckbook.com.

Ohio thus becomes the first state in the country to have all statewide pension funds accessible to the public by the click of a mouse. On Oct.1, the Ohio Police & Fire Pension Fund became the first pension system to get on board.

However, before you get all goosebumpy over the prospect of going online and finding out what your retired friendly cop on the beat, or your retired neighborhood firefighter, or that county officeholder who was forced to step down in shame are pocketing each month in pensions, here’s a reality check: That information is private.

So, when the OPERS Executive Director Karen Carraher says, “A pension system that is responsible for the stewardship of member and employer contributions must always operate in full view of the public,” there should be an asterisk included in the statement. The * would explain that the pension benefits received by OPERS members aren’t open to the public scrutiny.

‘Employer’ contribution

Why is it so important to know what public sector retirees are pocketing? For this reason: The public pension system requires a contribution from the employee and the employer (that’s you, private-sector taxpayer.)

By contrast, many companies don’t have a defined pension program and, instead, administer a 401-K program that is voluntary and is based on contributions from employees.

So, while Treasurer Mandel touts the benefits of his state transparency initiative, the shroud over the public pension system has the effect of hiding the most important aspect of pensions from public view.

“I believe the taxpayers and retirees of Ohio have a right to know how their tax money is being spent, and I applaud Ohio’s public pension funds for partnering with my office to post their finances on OhioCheckbook.com,” Treasurer Mandel said last year. “My vision is to create an army of citizen watchdogs who are empowered to hold public officials accountable.”

That’s all well and good, but how can we, the people, be watchdogs when we’re prevented from seeing how lucrative employment in the public sector can be? Indeed, given that so many have taken advantage of the retire-rehire system, which is a financial bonanza, or that a large number of elected officials retired before their terms were up and then ran for re-election to rake in the dough, the shroud needs to be removed from the public pension system.

Granted, that’s easier said than done. There are only two ways to attain full disclosure of public-employee compensation. One, action by the Ohio General Assembly. But hell will freeze over before state legislators, who are elected by the people but also qualify for public pensions, will blow the lid off the system. With all the games that are played by lawmakers so they can keep slopping at the public trough, the last thing they want are the prying eyes of the press and taxpayers.

The second way to get at the heart of the public pension system of Ohio is through citizen initiated statewide ballot issue.

While Ohioans have consistently demanded full disclosure when it comes to the expenditure of public dollars, any kind of initiative involving a petition drive is an uphill battle.

Thus, while state Treasurer Mandel touts the benefits of having the financial transactions of the five public employee unions on the state’s online checkbook, the law only permits the release of two pieces of information regarding personnel: one, whether an employee is retired; two, the salary at the time of retirement.

The pension system does toss out a bone to newspaper reporters and others who believe they have a right to all the information pertaining to retirees – the formula used to calculate pensions.

Here it is: The average of the three highest-paid years of public employment, multiplied by 2.2 percent, multiplied by the number of years employed.

Thus, an officeholder earning $100,000 a year [there are many more of those than you may think] in his three highest-paid years with 30 years of service would get an annual retirement of about $66,000. He would also receive benefits such as health care. [It is noteworthy that the value of the benefit package is never added to the bottom line.]

But because of the secrecy, we’ll never know if the formula is legitimate or a ruse.

The issue of public pensions bubbled to the surface a couple of years ago when a change in the cost-of-living adjustment went into effect. Instead of a flat 3 percent annual increase in retirement pay, members of OPERS got an adjustment based on the Consumer Price Index. That increase was about 1 percent this year.

That prompted a retirement rush so public employees could lock in the 3 percent for the foreseeable future.

It also gave rise to the creation of the big scam. Elected officials, including many in the Mahoning Valley, retired before their terms expired, but then ran (or are running) for re-election. The chances of an incumbent losing are slim to none.

Thus, these poor overworked public servants are raking in their annual salaries and their pensions.

Unfortunately, you private sector slugs who will probably work until it’s time to meet your maker, the pension amounts pocketed by public employees will never see the light of day. They are s-e-c-r-e-t!