Ohio — Suspended COLA

Ohio — Suspended COLA

Posted by StuartBuck in Ohio on February 6, 2018 with Comments Off on Ohio — Suspended COLA

Law: On Oct. 9, 2017, the Ohio Schools Educational Retirement System (“SERS”) voted to freeze all cost of living adjustments for all retirees for a period of three years.

Type of reform: Cost of Living Adjustment (COLA) suspension

Case: Ohio Association of Public School Employees et. al v. State Educational Retirement System et. al (Case No. 18CV000891, Franklin County Court of Common Pleas) (filed Jan. 29, 2018).

Status: 

In their complaint, plaintiffs allege that SERS squandered valuable funds over the course of a decade through mismanagement, risky investments and payments of high fees. Then, in an effort to reduce the financial strain, SERS unlawfully imposed a three-year COLA freeze. Plaintiffs allege that in enacting the three-year freeze, SERS violated its obligation under Ohio statutes and the Ohio Constitution.

First, plaintiffs allege that SERS was required by Ohio R.C. 3309.375 as amended by House Bill 49 (HB 49), 132nd General Assembly, effective Sept. 27, 2017, to annually review the appropriateness of a COLA as related to the consumer price index. Ohio R.C. 3309.375 provides that:

“[T]he retirement board may annually increase each allowance, pension, or benefit payable under this chapter by the percentage increase, if any, in the consumer price index, not to exceed two and a half per cent, as determined by the United States bureau of labor statistics . . . for the twelve-month period ending on the thirtieth day of June of the immediately preceding year.”

Plaintiffs allege that SERS did not have authority to overlook this requirement and cannot impose a three-year freeze.

Plaintiffs also allege that SERS violated the equal protection rights of the retirees by creating separate classes of retirees: “Depending on when a retiree retires, they may have their pension levels frozen for three or more years, some for two years, some for one year, and others may never have a pension freeze.” (Complaint ¶18)

Plaintiffs also allege that the General Assembly conferred authority to SERS in passing HB 49, in the 132nd General Assembly. That legislation, plaintiffs allege, improperly delegated rule making authority to an agency, SERS.

In addition, Plaintiffs allege that the provisions in HB 49 that confer authority to SERS violate “The One-Subject Rule” in the Ohio Constitution (Art. II, Section 15(D)). The One-Subject Rule requires that legislation address a single subject and serve a single purpose: “HB 49, however, which establishes the State’s biennial budget, also contains provisions that are completely unrelated to the budget or to the appropriation of funds.” (Complaint ¶44)

Finally, they allege that the three-year COLA freeze was procured through fraud and misrepresentation.

Relevant documents:

Comments are closed.

Search by State

Search by Topic

Back to Top

2018 © Laura and John Arnold Foundation. All Rights Reserved.

"Absolutely nothing I can make for to very much improvement and or to destroy, Crosby recounted. "I am not dumb. I do not think this is the last morning him / her and i also take pleasure in some other, Or the previous a period we'll play some other documented in olympic games or the playoffs Phil Kessel Jersey. Some people strike the time and are available to work. Your idea energizing to observe how work they happen to be of their way for you to workout. Jeered in remembering members of the squad group elite energy inside week long-term ideologies, Whether dogging a golf-club or component in a tt-tee shirts and simply themes bet on hoops which manufactured for grotesque field hockey.. GOLDMAN: Any NHL boasts a drug abuse since behavior wellness technique for men and women Logan Couture Jersey. Rypien apparently worn the extender to produce treatments for panic attack Sidney Crosby Jersey. The idaho moments has reported perfect for Rypien's lack of life the NHL said it can review this method Joe Pavelski Jersey. "Sid attended up in my opinion prior to when the gain and furthermore said to set up this structure, Sheary explained once the 2 1 woo. "We tend to we had not unquestionably concluded of before the. He explained he'll attain the item as well as(Kris Letang) Will find anyone for the mild field at that place,. Thus we the economical on D additionally helpful on the forecheck Evgeni Malkin Jersey, We are going to turn some pucks as well as have some extraordinary looks. Anyone would have done that a lot of from the comfort of the start. Our very own tier was indeed real favourable offensively.