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Sen. Cutrona pushes boost in pensions

Would require higher local government share for police

State Sen. Al Cutrona introduced a bill to increase the local government pension contributions for full-time police officers from 19.5% to 24% over a five-year period.

A bill to raise the pensions for police officers passed the Ohio House 66-25 on Dec. 4 and failed to get a hearing in the state Senate. A bill to increase the local government payment for police officers and firefighter pensions introduced Dec. 14, 2021, in the House never received a hearing.

The bill introduced Wednesday by Cutrona, R-Canfield, and state Sen. Andrew O. Brenner, R-Delaware, is a companion bill to one introduced May 20 in the Ohio House. The House Public Insurance and Pensions Committee had its first hearing June 4 on the bill.

Cutrona said: “Ensuring that our police officers are taken care of when they retire allows officers to have the peace of mind that they are supported by the community they serve.”

He added: “Raising the contribution rates local governments make toward their neighborhood police is overdue. I’m proud to work on behalf of the police officers who selflessly serve the people across the Valley and eastern Ohio.”

The proposal would incrementally increase the local government contribution amount for police officers towards the Ohio Police & Fire Pension Fund. It wouldn’t increase the current 12.25% contribution from police officers.

Local governments currently pay an amount equal to 19.5% of the salaries of police officers toward the pensions. It would go up by 1% annually starting the first July after the bill is signed into law annually for three years until it reaches 23.5% in the fourth year. It would then be increased to 24% on the fifth July if the bill is passed.

Since 1986, local governments have paid an amount equal to 24% of the salaries of firefighters with police officers arguing they should receive the same benefit.

“It will create parity between police and fire,” Cutrona said. “It’s just as dangerous to go into a burning building as it is to go after an armed robber.”

The new bill would also require the Ohio Police & Fire Pension Fund Board to establish a period of not more than 30 years to liquidate its unfunded actuarial accrued pension liabilities. Because of various issues — including more retirements and fewer new recruits — the fund has been underfunded, according to Nov. 14, 2023, testimony in front of the Ohio House Pension Committee by Mary Beth Foley, the fund’s executive director.

The bill that failed to pass last year would have increased the local government contribution to police officers to the same 24% over the same five-year period but police officer and firefighter contributions would have increased from 12.25% to 12.5% on June 30, 2030.

Cutrona said he didn’t want to require police officers or firefighters to pay more toward their pensions.

“The employees are putting in a decent amount already,” he said. “For the employees, it’s dollars out of their pocket.”

The Ohio Municipal League, the Ohio Mayors Alliance and numerous officials in various Ohio communities opposed the proposed 2024 increase for police pensions saying it would cost an extra $80 million annually when it hit 24%.

Cutrona said: “It’s a small ask of cities. It is going to cost the cities some dollars? Absolutely. But these are reasonable retirements for those risking their lives. Also, it’s not immediate. It will be spread out over five years.”

In Nov. 28, 2023, testimony given to the Ohio House Pensions Committee, Kent Scarrett, the Ohio Municipal League’s executive director, said: “The proposed contribution increase in this bill represents a significant amount of money that would be diverted from many important municipal services,” and the “unfunded mandate through this legislation could have the effect of raising the tax burden on local taxpayers who are already struggling with increased costs for housing, transportation and day-to-day needs.”

Unions and organizations representing police and firefighters testified in support of the bill.

The 2021 bill that never received a hearing would have jumped the local government contribution to 24% of police officers after the first year and then 0.5% annually for five years until it reached 26.5% for police officers and firefighters.

Starting at $3.23/week.

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