(November 6, 2009)

Executive Summary: Draft legislation is not yet complete. As soon as it's done being drafted, we should expect it to be introduced in the Ohio General Assembly. Action on the bill isn't expected until 2010. In the meantime, kudos to staff of the Ohio Retirement Study Council, who have been diligent in accurately describing the process and providing information to the public as it's requested.

Waiting for news of proposed changes to our pensions can be nerve-wracking. (Yes, "our pension"—I still have my OPERS account from my time in public service, so I'm not immune.) But no matter how you feel about the players in what promises to be an extended drama, one thing appears to be very clear: the staff of the Ohio Retirement Study Council (ORSC) have been trying to keep us informed as best they can. It's just that neither they, nor anyone else, can yet answer the question we're all asking: "What will actually happen?"

At present, ORSC is still working with OPERS, STRS, SERS, OP&F, and HPRS, and the Ohio Legislative Service Commission (LSC) to draft a proposed law that would implement the changes recommended by the five pension systems. Two notes about this draft legislation:

• The changes proposed for all five of the pension systems are being rolled up into one single draft bill, not a separate bill for each system.
• The legislation is not expected to be ready at ORSC's November 18, 2009 meeting. It is still expected to be ready before the end of the year.

When the draft legislation is complete, it would then be introduced in the General Assembly, probably by one of the members of ORSC who is also a State Representative or State Senator. This is not tied to the ORSC meeting schedule. That is, introduction of the legislation can happen as soon as the bill is done being drafted. Once the legislation is introduced in the General Assembly, ORSC expects to comment on it. But the substantial work, at that point, will be in the hands of our State Representatives and Senators.

And what of ORSC, the hitherto little-known steward of this part of the process? Our unscientific poll shows that only about 1/3 of visitors to this site believe they understand ORSC's role (a larger number than we would have expected). But in the time we have been in touch with ORSC since September 2009, we believe we have been given absolutely accurate information about what was happening, and when it would happen. We have found ORSC staff to be professional and responsive. For instance, when we suggested they put on their website the matrix from the last Council meeting, an ORSC representative said that was a good idea, and it was done within about a day.

Still, since the proposals issued by the five pension systems were made public, there has been little to tell. The real fireworks are expected in the Ohio House and Ohio Senate in 2010, as the bill is modified in the legislative process, and subsequently either adopted or rejected. (As one observer wryly put it, "That's when the fun begins.") We believe we can expect various interest groups to weigh in and use what political clout they have to influence any proposed changes to the law.

And just as with any pending legislation, the ultimate outcome is still, from today's viewpoint, anybody's guess.

—Ken Robinson