SenateState and Local Government Committee

Proponent Written Testimony

December 7, 2016

Karen Carraher, Executive Director

Chairman Uecker, Vice Chairman Hottinger, Ranking Minority Member Thomas, and members of the OhioSenate State and Local Government Committee, thank you for the opportunity to provide written testimony in support of House Bill 520.

By way of background, dating back to 2009, the OPERS Board and staff have undertaken an in-depth review of the laws that govern the system and the business processes that implement those laws. Today, we continue this review process with the intent to improve the administration of the retirement system and protect the long-term solvency of the system.

In addition to provisions proposed by the other statewide retirement systems, as well as provisions amended into the bill subsequent to the last Ohio Retirement Study Council meeting, HB 520 makes several changes to our laws that are intended to streamline our business processes and improve administrative efficiency—all with the intent to better serve our members. With regard to OPERS, the bill does the following:

Survivor Benefits

  • Provides for the payment of survivor benefits until age 22 to the qualified child of a PERS member who dies prior to retirement, regardless of whether the child is attending an institution of learning or training. Current law requires children / parents to prove that the students are not only enrolled in school, but that they have completed the necessary coursework. If a student fails to submit the paperwork of proof, benefits are terminated, which creates disruption for the parent and child.
  • Resumes survivor benefits of certain qualified children under age 22 whose benefits were terminated because they were not attending an institution of learning or training.
  • Specifies that, in the case of a PERS member who is also a member of STRS or SERS, PERS will honor the last beneficiary designation among three systems if the beneficiary is eligible for a combined survivor benefit from any of the systems.

Refund of accumulated contributions

  • Reduces to two months (from three months) the period of time that must elapse without a return to public employment before a PERS member or contributor may apply for a refund of contributions.

The bill also includes a number of other changes that are technical in nature and that modify provisions of the most-recent legislative changes in Senate Bill 42 (130th G.A.). Some of the changes ensure consistency among the law, our administrative rules, and current business practices.

HB 520 is an important piece of legislation for Ohio’s retirement systems and we hope to count on your support in the passage of this bill. Chairman Uecker, members of the State and Local Government Committee, thank you again for giving me the opportunity to testify in support of HB 520.

Please don’t hesitate to contact Gordon Gatien, Government Relations Officer, at 614-222-2924 if you have questions.

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