First-ever cuts to teachers pension await OK by governor, legislature

Plan highlights

Cost of living adjustments

Now: 3 percent per year, not compounded

Proposed: 2 percent per year, beginning July 1, 2012. If teacher retires after July 31, 2012, COLA doesn't kick in for five years.

Final average salary

Now: Based on highest three years of earnings

Proposed: Based on highest five years, beginning Aug. 1, 2015

Member contributions

Now: 10 percent of salary

Proposed: 13 percent of salary, with possibility of going to 14 percent. Phased in 2012-2014.

Age requirement:

Now: No minimum age with 30 years of service

Proposed: Must be at least 60 with 35 years of service. Phase in between 2015 and 2023.

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COLUMBUS — More than 180,000 Ohio teachers will have to work longer, pay more toward their retirement and then eventually receive smaller pension checks if a plan approved Thursday by the State Teachers Retirement System becomes law.

Stingier cost of living allowances will be given out to future retirees as well as to 133,000 current retirees.

The STRS board of trustees voted 7-3 in favor of the changes, which would be the first cut in benefits in the system’s 91-year history, according to officials of the retirement fund.

The changes will be phased in between now and 2023.

Increased life expectancy, higher health care costs, investment losses two years ago and generous benefits are forcing the cuts.

“Without these changes, there is a time in the future where we would not be able to pay pensions,” said STRS spokeswoman Laura Ecklar.

The proposal is a starting point. The changes must be approved by the General Assembly and Gov. Kasich.

Lawmakers are expected to propose a comprehensive overhaul for all five Ohio public employee pension funds.

Dayton teacher Vivian Jordan, who plans to retire in June 2012, called the changes disheartening.

“It seems to be a backward step for teachers,” said Jordan, 62, a language arts teacher at Thurgood Marshall High School.

Jordan, who has taught 21 years, said the proposed changes won’t impact her decision.

But Dayton teacher union officials believe the plan could prompt a spike in retirements in the next two academic years.

Ecklar acknowledged that the lower cost of living adjustments as well as eliminating an enhanced retirement formula for people who work 35 years or longer could trigger a wave of retirements but she added, “Nobody has a crystal ball.”