The History of PERS and PERI
as Partners in Retirement

1933 - 1959 / 1960 - 1969 / 1970 - 1979
1980 - 1989 / 1990 - 2000 / 2001-Present

The recordings in this document come from official publications and historical records of PERS and from official minutes, publications, and historical records of PERI.

Fifteen years after the retirement system was established, retirees began to organize in an effort to insure that their pensions would always be there for them and for their fellow workers in the future.

Even though all of the original founders have passed on, their legacy continues as each new generation of Retirees steps forward to volunteer their time and talents to protect the sound future of their retirement system.

The layout of this history is designed to illustrate cause and effect. More simply stated, the report shows, in the black print, facts, programs, or benefits granted by PERS; while initiatives and actions taken by PERI are printed blue. As you work your way through the document, you will see the actions taken by PERI and the results manifested in benefits granted by the retirement system.

With all this information in mind, let us start at the beginning:

The Founding of PERS: 1933 - 1959

1933
The State Employees Retirement System was established with Dale W. Stump as the first Executive Director.

1935
State employees begin making deposits to the System.

1936
Wilson E. Hoge, the 2nd Executive Director, is appointed.

1937
State employers begin making their first contributions.

1938
The first retirement check is paid. The System expands to include employees of counties, municipalities, health, park and conservancy districts. The System’s name is changed to Public Employees Retirement System of Ohio (PERS).

1941
Membership is made optional for elected officials, but most join.

1943
Fred L. Schneider, the 3rd Executive Director is appointed. In October, Township employees become eligible for membership.

1945
State pays up delinquent contributions to the System, putting it on a sound actuarial reserve basis.

1947
Benefits are increased to retirees and a monthly minimum pension of $15 is established.

1948
The Public Employees League of Ohio is formed by Hobart Scott with the purpose of providing a vehicle for political involvement for current and retired public employees. Offices are set up in the Southern Hotel in downtown Columbus and reports on activities in the Ohio General Assembly are sent out to members of the League.

1949
The Public Employees League of Ohio begins talking and writing to PERS and the Ohio Legislature about improving benefits for Ohio’s retired workers and their spouses.

1951
For the first time survivor benefits are provided.

1955
Benefits are increased and a guaranteed minimum is established based on a service credit formula.

1957
Benefits are adjusted upwards. The amount of Service credit required for members to qualify their survivors for disability benefits is reduced from ten to five years.

1959
An increase from 10% to 14% is made in all benefits. The amount of Service required for members to qualify their survivors for benefits, is reduced from three years to 18 months.

On the last day of 1959, PERS completes its 25th year of operation. During the first 25 years, a total of 1,400,000 checks, amounting to almost 100 million dollars, has been paid to 19,659 retirees, surviving spouses, or beneficiaries.

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Public Employees League: 1960 - 1969

1960
The Public Employee’s League begins a lobbying campaign for Healthcare assistance for retirees.

1962
PERS selects Blue Cross/Blue Shield in August as the first healthcare plan provider. It was a voluntary hospital and medical insurance program totally paid for by those who signed up.

1965
PERS increases benefits.

1966
Assets pass the one billion dollar mark, with investments, deposits, and accounts receivable equaling $1,007,650,411.

1968
PERS increases Pension Benefits and a voluntary premium deduction program is made available to pay Medicare Part B premiums.

1969
The Public Employees League of Ohio’s President, Hobart Scott, meets often with Representative Ralph Welker, chairman of the Subcommittee on retirement. The League also works to establish personal contact between State Representatives and League members in each local district. League members telephone, write, and meet personally with members of the Ohio General Assembly encouraging their support for legislation that would increase Retirement Pensions.

1969
PERS institutes the largest pension increase to date: 12.3%.

The Public Employees League of Ohio changes its name to The Ohio State Retirees Association.

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Founding of PERI: 1970 - 1979

1970
PERS moves into their new building located at 277 East Town Street. Improvements are made in benefits to survivors relating to a member’s final average salary (up 60%). Also expanded eligibility requirements are extended to children age 18 and over.

The Ohio State Retirees Association members incorporate their association under the name of Public Employee Retirees, Inc. and begin using the acronym PERI when referring the Association.

1971
J. Douglas Peters, the Fourth Executive Director is appointed. For those retirees who have received at least 36 monthly payments, a 1% cost-of-living allowance is enacted for each year the Consumer Price Index reflects an increase of 1% or more. The three-year marriage requirement is eliminated as a qualification for sole survivor benefits for widows and widowers.

Fred Schneider, the 3rd Executive Director of PERS, becomes the 1st PERS Executive Director to address PERI members at their Annual Meeting.

Dale Stump, the 1st PERS Executive Director, works with PERI to establish legislative contacts and to get their Bill (HB 284) acted upon by the legislature.

16 PERI members meet with members of the State legislature to promote HB 284.

PERI hires its 1st Legislative Counsel, Robert Forman, to handle PERI’s legislative proposals with members of the Ohio General Assembly.

1972
PERS, under HB 430, fixes the rate of employee contribution at 8% and makes it possible for employer rates to increase to a maximum of 13%, if necessary. Retirement is made possible after 32 years of service credit, regardless of the member’s age. Veterans are able to credit three years of their military duty toward retirement. A uniform annual earnings requirement of $3,200 is adopted.

PERI works with PERS to seek approval of Senate Joint Resolution (SJR 12) for pension checks to be issued the first of the month instead of the last of the month. PERI’s on going work with PERS and the Ohio General Assembly results in improved retiree benefits as their proposals begin taking form as approved legislation.

1973
The PERS Board passes a motion to issue checks at the 1st of the month in response to the passage of SJR 12.

PERI, through their newly retained legal counsel Robert Draper, developed proposed legislation to include raises for those who retired from 1968 - 1971 and to raise the cost of living allowance from 1% to 2% (HB 214).

PERI’s Legislative Counsel works with the Attorney General, Senator Secrest, and Senator Applegate to sponsor a Bill that will put a retiree representative voting position on each Retirement System’s Board of Trustees (SB 95).

Lobbying is carried out by way of an intensive telephone, mail, and personal contact effort to secure approval for House Bills 620 and 430 which will allow PERS to pick up the Healthcare Premium and pay a $500 death benefit.

1974
PERS, under HB 1476, provides increases ranging from 5% to 33% for many receiving retirement and disability benefits. A 20% increase of benefits is made to widows and children of members who died on the job. The purchase of out-of-state or federal service toward retirement service credit is authorized. The “final average salary” period is reduced from five to three years.

HB 430 passes in November of 1973 and becomes effective in July of 1974. The Bill provides the required legislative authority for the retirement systems to pay the premium costs of hospital and medical coverage. The Board approves these payments for all those receiving age and service, disability, or survivor benefit payments and it also makes available a policy for spouses to purchase. HB 430 also provides for a $500 death benefit to be made payable to the estate of those who die while receiving an age and service or disability benefit.

In July, Aetna Life Insurance becomes the Health Care provider replacing the Blue Cross/Blue Shield Program. A $20,000 maximum lifetime benefit per covered person for hospital and medical benefits is established.

PERI calls and writes to members of the Ohio General Assembly urging the passage of HB 1476 which will provide for percentage increases in retirement benefits based on date of retirement and for HB 1443 which would raise the cost of living rate to 2%.

1975
The state employer contribution rate increases from 10.4% to 12%.

1976
William S. McLaughlin is appointed the 5th Executive Director of PERS.

HB 1443 provides for the cost-of-living rate to increase to 2%.

1977
PERS begins reimbursing the $7.20 premium for Medicare Part B.

PERI begins work on getting mental health coverage raised from 50% to 80%.

PERI continues their legislative efforts to have at least one retiree representative placed on the PERS Board.

1978
PERS begins a Healthcare cost containment program. Aetna and PERS set a date limitation of two years from the date the claim was incurred in order for it to be considered for benefit payment. In addition, problem-provider audits begin to identify certain providers whose claims consistently indicate charges in excess of reasonable/customary levels, over utilization of or unnecessary services, and overly complicated procedures.

PERI member, Carl C. Griffith, elected as retiree representative on the PERS Board of Trustees.

After testimony by PERI’s Legislative Counsel, retired Judge Robert Draper, and President, Wilber Wood; PERI is successful in getting an amendment attached to HB 1006 that adds a retiree representative member to the PERS Board of Trustees.

PERI offers a proposal to both Political parties to include in their platforms the following statement: “In recognition of the valuable services of Ohio’s public retirants, because of the serious and continuing erosion of the standard of living of these retirants as a result of inflation, and as a matter of equity, we the Platform Committee favor the establishment of retirement benefits related realistically to the increases in actual cost of living.”

PERI wages a letter writing and personal legislative contact program to seek the passage of HB 204. HB 204 provides for a 1% cost of living increase for everyone and a 5% ad Hoc increase for those who retired prior to July 1, 1974.

1979
Due to the passage of HB 204, PERS is able to grant a 3% cost-of-living adjustment and a 5% ad hoc increase on the first $5,000 of annual pension for those whose benefits had been figured on the old five-year formula.

PERI presents HB’s 367, 368, and 369.

PERI files a law suit before the Ohio Supreme Court against PERS in order to secure the names and addresses of current and deceased retiree members of PERS.

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1980 - 1989

1980
Healthcare cost containment moves into on site hospital billing audits conducted by nationally recognized hospital audit vendors.

PERI works to defeat HB 113 which would have permitted the State of Ohio to use 25 % of PERS funds for other state projects.

PERI works with OPWU on a COLA proposal for the Ohio General Assembly.

President Draper also works with Legislators to introduce a percentage increase for retirees. This work results in HB 1265 in 1980 and in HB 126 in 1981.

1981
In response to the passage of HB 1265, PERS grants an ad hoc increase from 4% to 6%, and sets in place a maximum 3% annual cost-of-living allowance. PERS increases its maximum lifetime healthcare benefit to $500,000 per covered person.

In March a mail order prescription drug program is established with National RX that will provide a 90 day supply of medications with a $1 per prescription co-pay. Healthcare cost containment continued with Aetna implementing an individual case management program where cases were studied with an eye towards discovering whether or not there were possible effective alternative treatments. In addition alternative benefits were provided to ensure an entire episode of an illness would be treated in the most cost-effective manner.

In July PERS becomes self-insured with Aetna acting as their service agent.

PERI testifies in favor of their proposed legislation (HB 126) to grant an ad hoc increase to retiree benefits.

1982
The new 37,000 square foot addition to the 277 East Town Street building is opened and occupied by a number of PERS’s departments.

Aetna begins investigating fraud cases by sending investigators to review and document potential cases of fraud identified through claim processors, complaints, government agencies, audits, employers and other sources.

PERI member, William G. Wilcox, is elected to be the retiree representative on the PERS Board of Trustees.

PERI becomes involved in an effort to reduce or eliminate the Social Security Pension offset rule that was passed in 1977 and becomes effective in 1983.

PERI begins the process of working with PERS to secure Dental and Vision insurance coverage for retirees. PERI begins work on getting proposed legislation to increase the minimum benefit from $120 to $150, and to get a 1% to 8% yearly increase based on the CPI.

In April, PERI moves their office to the Trautman Building 209 S. High St.

PERI institutes a letter and telephone campaign to counteract a move in Washington DC to eliminate state run pension systems by make Social Security mandatory for state employees.

1983
PERI President, Robert Draper, works directly with Governor Celeste, and Speaker Vern Rife, and the PERI Legislative committee writes and calls Representatives and Senators for their support for the passage of HB 232, HB 291, and HB 217.

HB 232 would give retirees a 5% increase separate and in addition to the 3% COLA, and would increase the base for calculating PERS benefits. The bill would increase the monthly salary that a part time employee must earn to get a full month’s service credit from $150 to $250, and it would permit administrative department heads appointed by the Governor to purchase additional PERS service credit.

HB 291 would cut taxes by increasing the personal income tax exemption from $650 to $1,000, raise the Senior Citizen Credit from $25 to $50, eliminate the local intangibles tax, create a retirement income credit (with maximum of $200), and increase estate tax benefits for surviving spouses.

HB 217 would increase the maximum burial allowance from $500 to $2,500.

After discussions with the PERS administration, PERI institutes opposition to SB 53. SB 53 would require the pension systems to dispose of all stock in companies doing business in South Africa.

Because a law suit was filed to stop PERS from dealing with national pharmaceutical companies; PERI President, retired Judge Robert Draper, will file a “friend of the court” brief in support of PERS and the benefit to retirees.

1984
With the passage of HB 232, PERS changes the benefit formula to reflect an increased of 2.1% and gives retirees a 5% Ad Hoc increase.

PERI opens discussions with Aetna Insurance and PERS to explore the possibility of securing group rates for auto and home insurance for PERS retirees.

PERI continues its opposition to the Social Security Pension Offset buy working with other groups from across the country. They attempt, to no avail, to get legislation out of the US House Ways and Means sub-committee that would eliminate or at least modify the offset.

1985
PERS’s membership grows to 303,100 and 91,400 Retirants. Hospice Care is added as a benefit for terminally ill patients

PERI’s President Robert Draper testifies on behalf of retirees to oppose natural gas hikes for retirees.

PERI encourages the PERS Board to seek legislation to increase the minimum burial amount from $500 to $1,000.

PERI proposed to members of the Ohio General Assembly that the first $12,000 of pension payments be exempted from state income tax

PERI opposes legislation that would allow PERS to loan pension funds to working members.

1986
A 10 year minimum of Ohio service credit is imposed on Service and Age Retirees in order for them to become eligible for health care coverage. (Out-of-state and/or military service credit purchased after Jan. 29, 1981 or service credit granted under a retirement incentive plan may not be included in the 10 years.)

The maximum lifetime benefit per covered person for hospital and medical benefits is increased to $1,000,000

PERI receives official certification to function as Lobbyists in the state of Ohio. John Gilchrist is hired as PERI Legislative Counsel.

PERI testifies against the passage of HB 122 and SB 14. These Bills would restrict the PERS Investment Division’s ability to invest in certain countries. PERI’s legislative efforts are effective and both Bills fail to pass.

1987
The mail-in prescription co-pay is set at $2 per prescription for 120 day supply.

PERI Directors are approached by AFSCME to help them set up a retiree Chapter.

PERI meets with the PERS Executive Director and Board of Trustees to explain the retirees’ desires for Dental and Vision insurance at a reasonable cost; and to encourage the Board to request an Ad Hoc pension increase for retirees.

PERI calls and writes Representatives and Senators for the passage of the death benefit increase bill. PERI pushes for COLA increases to reflect the true rate of inflation.

1988
PERI President, Carl James, meets with the Ohio Attorney General, Anthony Celebreeze, (in light of a local-pharmacy lawsuit to stop PERS from contracting with mail order prescription Companies) to share our support for the program.

PERI legislative activity gets the death benefit increase incorporated into HB 760. HB 760 is the Bill that reflects PERI’s push for a 1/2% increase for each year of retirement.

PERI pleads the case of retirees with PERS to limit the yearly deductible to $100 even if it means loss of other benefits.

PERI moves its offices to 1229 Dublin Road in April.

1989
PERS establishes a $100 deductible per individual per year for Healthcare. For retirees with more than 30 years of service credit a new component is added to the calculation. Any service years over 30 years will be multiplied by 2.5% of the final Average Salary (FAS).

With the passage of PERI’s HB 760, the death benefit is increased based on a member’s years of service credit. Less than 10 years, $500 (10-15 years, $1,000 (15-20 years, $1,500 (20-25 years, $2,000 (25 or more years, $2,500.

A long-term care program is developed with Aetna and made available to retirees for a premium.

House Bill 58 passes which effectively allows the purchase of service credit through payroll deduction.

PERI goes on record as opposing the Medicare Catastrophic Law which puts the entire burden of financing this law on the senior citizens who are under the Medicare program. The PERI Legislative Committee across the state writes to and calls Senator Metzenbaum and Senator Glen to make certain they understand our opposition to this type of legislation.

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1990 - 2000

1990
House Bill 167 changes the order of automatic succession for determining the qualified beneficiary upon the death of a retirant. If there is no designated beneficiary for the death benefit, beneficiaries will now qualify in the following order: 1) surviving spouse; 2) retirant’ s surviving children, share and share alike; 3) parents of the deceased retirant, share and share alike; 4) if none of the above, the person responsible for the burial expenses; 5) the retirants estate.

Senate Bill 240 limits the amount of purchasable out-of-state and military time to 5 years. It also changes the names of the retirement plans from Straight Life Annuity and Options 1, 2, 3, to: Plans A through E.

House Bill 382 imposes a 2 month waiting period on retirees who seek state re-employment. This individuals are now required to begin contributions into the System on the first date of re-employment. They must elect to either 1) have their retirement allowance suspended for the re-employment period and contribute toward a formula benefit, or 2) continue to receive their retirement allowance and contribute to the money purchase annuity.

PERI Board of Directors offers its backing to national groups working on eliminating the outside earnings cap on Social Security recipients.

PERI continues in its quest to find enough Federal Legislative support to eliminate the Pension Offset provision of the Social Security Law. PERI works with Congressman, Clarence Miller, to sponsor a bill that effect.

1991
Richard E. Schumacher succeeds William McLaughlin as Executive Director.

Membership rule changes under RB 382. This Bill allow students, who are working for the public school or college they are attending, to exempt themselves from contributing. Also three groups of employees must now become members: 1) persons receiving a disability benefit or a service retirement allowance from any other Ohio public retirement system must contribute on their PERS-covered positions and will accrue a money purchase annuity; 2) persons actively contributing to PFDPF, HPRS, or CRS must contribute on their PERS-covered positions toward a formula benefit; and 3) summer only employees not members of PERS who are contributing to STRS or SERS on a full-time basis for the current school year must contribute on their PERS covered positions toward a formula benefit. Also, PERS member who are contributing to the PERS law enforcement division and concurrently hold a non-law enforcement PERS-covered position are required to contribute on both the law enforcement and on-law enforcement public service and may earn benefits under each.

PERI voices their opposition to HB 131 that would provide for dues check-off, and HB 382 which would put certain state employees under Social Security. PERI’s legislative committee works to defeat HB 104 which proposes school income tax, and would make state pensions subject to that tax.

HB 493 is introduced. This is a bill that would take the healthcare program away from the PERS Board and put it under a new agency. PERI’s Legislative Counsel and Legislative Committees get to work and get this bill stopped in its tracks.

Rumors from Washington D. C. surface again about a hostile take over of State Retirement Systems, and the PERI Legislative Committees begin contacting Ohio’s Senators and Representatives expressing our opposition to any such concept.

1992
Changes in the disability benefits program were enacted under Senate Bill 346. This bill required PERS to create a disability program to allow a member to apply for disability benefits at any age but to receive payment for a specified number of months.

The dues check-off resurfaces as a part of HB 131, so PERI again testifies in opposition to the amendment.

HB 403 which would allow PERS Law enforcement employees to retire with full benefits at the age of 48 with 25 years of service. PERI opposes this bill unless full funding is made a requirement.

1993
House Bill 151 increased the waiting period from two months to six months for a retired member to return to another public job.

Senate Bill 43 change the limit of assets invested in common stocks from 35% to 50%; and permitted up to 10% of assets to be invested in international investments.

Two new services are added: the Ohio Relay Service, for those with speech impairments; and TTY/TDD devices for those with hearing impairments.

PERI hires an Administrator, William I. Winegarner, for their office operation in order to allow members from outside of the Columbus, Ohio area to become Officers and bring a wider representative outlook to the association.

PERI shares the insight of its members with PERS administrators in PERS’s on going efforts to keep healthcare adequately funded so that future retirees can enjoy the benefits also.

PERI lends its support to SB 43 and HB 157 which would allow PERS to increase its stock holdings to 50% of the total portfolio from the current 35%.

HBO 264 revises the dues check-off which PERI opposes.

SB 161 is introduced to require The Retirement Systems to create healthcare funds and to put a $29.90 limit on the amount of Medicare part B reimbursement that they could pay. PERI marshals all their legislative effort to defeat this bill, because mandated health coverage would cause a reduction in the healthcare that PERS currently provides, and we felt the decision on the Medicare part B reimbursement amount should be left up to the PERS Board of Trustees.

1994
Dental and vision insurance coverage is offered to retirants for a negotiated premium.

A toll free phone service is added in order to provided greater access for retirants in or out of state.

This year, weekly and vigilant efforts are required to stop the passage of SB 161. (The Bill that would put a ceiling on the amount PERS could reimburse for Medicare part B, and establish a separate healthcare fund.) PERI works with PERS to explain to our members the reasons for healthcare changes and adjustments that are made necessary to contain the cost of, and thus the benefit of, the healthcare programs.

PERI moves its offices to 659-F Park Meadow Road in Westerville, Ohio, a Columbus, Ohio suburb.

1995
Becomes a maintenance year for PERS, growing the pension fund and refining the healthcare programs.

PERI proposes and finds a sponsor for HB 365. This Bill would allow PERS to pay the current COLA, whether or not the CPI is less than 3% or the retiree has surplus “points” in their “bank”.

Through PERI’s nationwide membership and legislative committee network, PERI faxes, telephones, and writes to all members of the Ohio General Assembly, explaining our opposition to the passage of SB 161. We are successful in our efforts, and the Bill is defeated.

An Ad Hoc increase is added to PERI’s HB 365 which will adjust upward the pensions of those who retired prior to 1978.

1996
HB 123 passes and allows surviving spouses to continue receiving benefits if they remarry after age 55.

HB 365 passes and allows PERS to pay the cost-of-living adjustment even if the CPI is less than 3%. HB 365 also provides for a formula Ad hoc increase to bring all those who retired prior to 1978 up to 70% of the original purchasing power of their pension.

A new health-related publication, PERSpectives, was introduced in order to help benefit recipients keep better informed on the newest health information. The Merck-Medco Managed Care prescription drug benefit program is instituted for benefit recipients who participate in the PERS health care plan administered by Aetna or Medical Mutual

PERI’s legislative counsel and legislative committee stay vigilant and work to eliminate an amendment that would limit the Medicare part B reimbursement to $29.90 (The same requirement we defeated under SB 161). PERI was successful once again and the amendment was dropped. This action alone saves each Medicare retiree a minimum of $185 per year in lost benefits.

PERI refines its state wide Legislative network in order to keep the new term-limited members of the Ohio General Assembly up to date on the historical background of retirement issues.

1997
PERS established on World wide web at http://www.opers.org The toll-free telephone number, which had been for benefit recipient use only, becomes available for all PERS members.

House Bill 586 Alternative Retirement Program instituted for certain college and university employees.

Senate Bill 82 became effective granting a greater level of investment authority, by instituting the “prudent person standard” and eliminatinglegislated percentages, to the Board of trustees. The Bill also set new re-employment limitations on elected officials who retire from office during their term, and who are subsequently re-appointed or are re-elected to the same office.

In light of a substantial PERS stock loss, PERI investigates the procedures followed in the acquisition of the stock and concludes that everything was done according to required law and procedures. PERI gives an in-depth explanation to their members about their findings and explains the concept of investment risk verses potential profits.

Continuing efforts are accelerated during 1997 to get some Federal action on the Social Security Pension Off-Set. Members are polled to get a scope of its effect on them. Our Legislative team coordinates with members who have moved to other states after retirement so that the US Senators and Representative from all 50 states will receive requests from their constituents to eliminate or reduce the offset.

1998
House Bill 648 affects survivor benefits and requires spousal consent before a retiree under a Plan A, C, or D can change a spousal beneficiary after a divorce, dissolution, or annulment.

As efforts continue to get the Social Security off-set eliminated or reduced, a renewed effort by some members of congress surfaces to eliminate all state run pension systems.

PERS and PERI immediately begin working together with the other four Ohio retirement systems and their retiree associations, to counteract this movement. Once again our members, who have retired out side of the state of Ohio, are requested to write and call their US Senators and Representatives and to call and write the White House. We made certain that the greatest number of policy makers knew how vehemently we opposed any form of eliminating state retirement systems.

In Ohio we distributed over 50,000 copies of Governor Voinovich’s letter to our members. The letter explained the financial effects on current retirees if new members are stopped from joining the state operated retirement systems. PERI sent a representative to The Joint Legislative Conference of the National Conference of Public Employee Retirement Systems in Washington DC, in order to stay on top of the issue and to express the view point of Ohio’s retired public workers.

Our efforts to stop the Federal elimination of state pension systems begins to have some effect with President Clinton apparently reversing his position by dropping it from his budget computations. In addition, several Senators and Representative begin backing off of their push for the change. With federal elections in the year 2000, all Social Security issues, including the off-set and mandatory social security for state workers, are put back into the Ways and Means committee for further consideration.

HB 648 is introduced that among other things, eliminates the remarriage restrictions on surviving spouses and reinstates benefits to those who lost them under the previous laws. PERI lends its support to the Bill.

HB 199 is introduced. PERI is strongly opposed to this Bill because it would start a change in our retirement system from a “ Defined Benefit” system to a “Defined Contribution” system; or a combination of the two. PERI puts its full legislative efforts behind defeating this proposed legislation.

1999
PERI Life Time member, Sharon Downs, is elected to replace William Wilcox as the retiree representative on the PERS Board of Trustees.

House Bill 673 allows purchase of leave of absence for periods in which a member was required to resign due to pregnancy. House Bill 187 adds certain Ohio Department of Natural Resource employees to the law enforcement division.

Richard Schumacher announces his retirement, to become effective December 31, 1999. Mr. Schumacher worked for PERS for 39 years, the last nine of which he served as Executive Director.

PERS sends proposed pension enhancements to the General Assembly.

PERI continues its all out legislative efforts to stop HB 199 from changing the basis of our pension system by launching and sustaining a letter writing, phone calling, and personal contact campaign.

PERI’s President, Legislative Chairman, and Administrator are invited to sit in on PERS Board meetings pertaining to the funded status of the system. PERI offers the perspectives of its membership in regards to future benefit enhancements.

Retired PERS Executive Director, Richard Schumacher, becomes a Life Time member of PERI.

2000
Laurie F Hacking becomes the 7th Executive Director of PERS.

Sharon Downs, PERI Life Time member, is elected Chairman of the PERS Board of Trustees.

PERI distributes information to its members and legislative Committees around the state in order to be prepared to give its full support to the anticipated pension enhancement legislation.

On March 28, HB 628, the pension enhancement bill, is introduced. PERI works with the PERS legislative team and current worker and employer groups in order to unify support for the bill’s passage. Our Legislative Counsel gives testimony before the House to present the reasons why Retirees support the legislation. In the legislative process the 3% COLA is dropped and a requirement for PERS to formulate a Defined Contribution plan is inserted into the Bill. PERI expresses its support for the flat rate COLA and vows to keep the pressure on in order to secure it passage in future legislation. PERI also expresses its great concern over opening the door to any Defined Contribution Plan.

HB 623, which is a revised version of HB 199, is introduced. This bill would allow elected officials to have the option of selecting a defined contribution plan offered by private vendors.

PERI opposes the passage of this bill, because it is one step closer to changing our system from a defined benefit system to a Defined contribution system.

HB 691 is introduced. This bill would have mandated the investment of a set amount of pension fund reserves in the very risky high tech venture capital markets.

PERI opposed the legislation and the bill failed to pass.

HB 628, the pension enhancement bill, passes with the strong support and testimony of PERI. HB 628 raises the base multiplier from 2.1% to 2.2%, provides an Ad Hoc increase to bring long time retirees base up to 85% of the purchasing power their pension had at the time of their retirement. Authorizes PERS to develop an "in house" defined contribution plan for new hires.

2001 - Present

2001
HB 157 is introduced: This bill reintroduces the 3% permanent cost of living increase that was dropped from HB 628.

PERI worked with members of the Ohio General Assembly to get the bill introduced and gave extended testimony in support of its passage.

HB 173 is introduced: This bill reintroduces legislation that would require PERS to set aside money from the pension fund for investment in the very risky high tech venture capital markets

PERI gives testimony to defeat this legislation.

SCR 7 is introduced: This Senate Concurrent Resolution memorializes the US Congress to oppose and defeat any legislation containing provisions that require Ohio's public employees to participate in Social Security.

PERI gives its full backing to this resolution. It is passed by the Ohio General Assembly and sent on to the US Congress.

US Senator George Voinovich (R-OH) leads the way in keeping mandated social security coverage for state public employees out of federal Social Security legislation.

PERI members from across the United States write their local congressional leaders to support Senator Voinovich's position. The topic is dropped from proposed Social Security reform legislation.

PERS experiences a 50 million dollar loss when the Enron Company files for bankruptcy.

PERI investigates the procedures for selecting the stock, and determines that the PERS investment committee and staff followed the prescribed procedures in procuring the stock and that a prudent investor would have made the same determination given the published SEC documents.

2002
PERS continues to experience losses when two more of their investments, MCI-Worldcom and Global Crossing go into bankruptcy.

PERI investigates and determines that proper and normal procedures were followed in acquiring the stocks, and that we are just living in a unique time of corporate and accounting firm misrepresentation in their SEC documentation. PERI takes the position of supporting the investment committee and staff at PERS, because a prudent investor would have made the same decisions with the information available at the time.

HB 215 and HB 404 are introduced. 215 would add municipal park rangers to PERS-LE (Law Enforcement), and 404 would allow certain county and independent agricultural society employees to join PERS.

PERI begins its opposition to these two bills, because they would cause an unfunded liability for the system, plus jeopardize the standing of the system as a state employee pension fund. Our legislative counsel works with the Ohio Retirement Study Council and members of the Ohio General Assembly to keep these bills in committee.

SB 180 an amendment is slipped into this bill that would create a "Public Fund Investment Study Committee."

PERI successfully opposed this amendment and got it dropped from the bill, because its sole purpose was to circumvent the Ohio Retirement Study Council and the PERS Investment Committee and staff in order to force investments in the high-risk technical venture capital markets. It was an attempt to slip the defeated HB 173 into law as an amendment.

SB 289 is introduced. This bill would force PERS to use OHIO stockbrokers to invest their funds.

PERI successfully opposes this bill, because it limits PERS from utilizing the services of the most successful investment houses in the country. It may have helped Ohio business, but Ohio's public retirees felt it shouldn't be at their expense.

PERS continued to suffer huge portfolio value decline during this year, almost 10 billion dollars in value.

PERI continued to monitor their investment practices and results in comparison to other public and private retirement systems. Indications were that they were doing better than most, and we notified our members of our findings and indicated our confidence in the PERS investment committee and staff.

2003
The Public Employees Retirement system of Ohio, (PERS) changes its name to the Ohio Public Employee Retirement System, and begins using the acronym OPERS.

The long-term financial stability of the Healthcare fund emerges as a critical area of concern. With investment income in decline, and the doubling of healthcare cost over the past four years, something needed to be done.

Representing retirees, PERI Administrator, Bill Winegarner joins the OPERS healthcare work group, participating in a three- hour survey meeting in December of 2002, and four six-hour meetings in 2003. PERI Board members, Evelyn George, and Estella Nusbaum, join Mr. Winegarner for the 2003 work group meetings. The purpose of the meetings was to review the healthcare program from its beginnings and to study the long-term funding effect of various changes in eligibility, benefits, and cost. At the conclusion of these meetings, several proposals were submitted to the OPERS Board of Trustees for final decision.

OPERS Investment practices, and an upturn in the market allow OPERS to recuperate the financial losses and to regain the 10 Billion in assets.

2004
PERI works with the Ohio House of Representatives to add a second Retiree position to the OPERS Board of Trustees. HB 227 is introduced to accomplish this goal.

PERI organizes to defeat this bill. Our Legislative network of district and chapter legislative chairs and committees write and call their state representatives. The Ohio House leadership counters with a campaign of miss information and denials that the legislation really contains these provisions, and forces a successful vote on the Bill. PERI puts together the largest coalition of current and retired state, county, municipal, and township workers ever assembled. Our coalition, representing one and one half million individuals, held a press conference at the State House, and attracted enough media and public attention that we were able to convince the members of the Senate not to adopt the House version of the Bill. After much hard work, and the steadfastness of the Senators, a compromise was worked out and the first two of the offensive provisions were dropped from the Bill, but the third, political appointments to the Board, survived.

PERI's incentive for a second Retiree Board member also prevails.

PERI continues working with the OPERS Healthcare committee to arrive at a new Health Care Preservation Plan (HCPP) that will enable our members to continue with affordable healthcare under OPERS benefits.

2005
Dan Drake, OPERS Director of Benefits, retires and becomes a Lifetime member of PERI.

PERI Administrator, Bill Winegarner, completes database work that will assign each member of the Ohio General Assembly to his or her corresponding Chapter Legislative Chair. This assignment process allows the Chapters to build a personal relationship with their area's legislators in order to discuss our position on retirement system issues.

OPERS finds a sponsor to introduce a bill that includes a series of changes, or clarifications, to existing OPERS operational laws the Bill is know as HB 272.

After review and discussions, the PERI Board finds no immediate objections to the changes being proposed.

HB 10 and SB 21 are introduced that put a 1 year after marriage limit on the time a single annuitant has to change to a married plan.

PERI supports this legislation, because a grandfather clause for one person was eliminated.

HB 62 would allow magistrates to purchase service credits at the same rate as legislators.

PERI opposes this proposal since it will create un-funded liability for the retirement system.

An amendment was tacked onto the budget bill, SB 66, which would allow Municipal safety directors to transfer into OPERS-LE (Law Enforcement). If an individual is in the law enforcement division they can retire as much as 10 years earlier.

Even though PERI, OPERS, and The Ohio Retirement Study Council strongly voice their objection to the amendment in HB 66, the bill passed with the amendment in place.

PERI exposes those legislators who worked behind the scenes to pass the political favoritism amendment, and each is called to task by the PERI membership.

The following bills were also introduced: HB 270 would allow prison officers to join the Law Enforcement division;. HB 71 would allow up to 5 years of inactive military service to be purchased; HB 286 would allow municipal rangers and township cadets to transfer into OPERS-LE.

PERI opposes all these proposals since each of them would create yet another un-funded liability for the retirement system. All these are Bill were held in place, because the General Assembly asked the Ohio Retirements Study Council, based on our opposition and testimony, to study the effects of un-funded liabilities on the retirement system.

2006
January 23, 2006 - The Ohio Public Employees Retirement System announced that Laurie Hacking, OPERS Executive Director since January 2000 had accepted a position with the Minnesota Teachers Retirement Association. Hacking will leave OPERS at the end of February.

Mr. Blake Sherry, OPERS Chief-Operating Officer, is named interim director.

PERI sent a letter to the Ohio House stating our support of the Bill and its provisions.

PERI continues its opposition to legislation (HB 62, 71, 270, and 286) that creates un-funded liabilities for the retirement system. Because of PERI'S opposition testimony to HB 71, the Ohio Retirement Study Council is requested to conduct a study on the cost of purchased service credits to the retirement systems. The study showed that OPERS was subsidizing an average of 55% of the cost.

OPERS begins its 5-year review of its operating rules. The operating rules are their interpretation of how they are to apply all the laws that pertain to the operation of the retirement system.

PERI provides input from the perspective of our membership to those working on the rules.

OPERS announced, that starting October 31, 2006, Mr. Chris DeRose, from The Michigan Retirement System, would become the new Executive Director.

PERI's Legislative Council, John Gilchrist, and Administrator, Bill Winegarner, begin the process of educating all of the members of the Ohio General Assembly on the four areas of legislative concerns to our members and and their families. Those areas are: The purchase of service credits, legislative attempts to affect social or political change using our pension funds, Legislated use of specific vendors, and transferring people into the OPERS- Law Enforcement division.

2007 - 2008
Because of the trend that began to develop in the late 90s, and continued through the first half of the 2000s, PERI sent a letter to every member of the Ohio General assembly on February 25, 2007 exhorting them to refrain from using the assets in our pension system for purposes other than pension and benefits.

The major points addressed in the letter were as follows:

Allowing certain individuals to purchase additional service credits. Allowing certain individuals to transfer from the regular division of OPERS to the Law Enforcement Division. Requiring the system use certain vendors, stockbrokers, or financial planners. Attempting to use the system's assets to affect social or political change. Forcing the establishment of defined contributions plans, and requiring the system to provide money for venture capital projects. (Click here to see the full text of the letter.)

Shortly thereafter H.B. No. 151 (Josh Mandel and Shanon Jones) was introduced which attempted to impose politically motivated investment decisions on the retirement system, by preempting Federal regulations on international stock trading, with rules to be imposed by the Ohio General Assembly.

Since the passage of this bill would have cost the Retirement System over 1 billion dollars in real dollars lost revenues, PERI mobilized all of its resources to defeat the legislation. These included calls from our members to their respective Representatives, opposition testimony at Committee hearings with PERI members from around the state in attendance, opposition testimony on the substitute bill, and an open letter to all members of the House of Representatives.

The result was a stalemate. The bill was sent to the reference committee, and the Executive Directors of the Retirement systems, agreed to develop a plan of divestment, so long as that plan would not cause them to breech their fiduciary responsibilities to their membership.

PERI's Opposition Testimony on HB 151

Administrator's Testimony on Substitute HB 151

Open Letter To the Speaker of the House of Representatives

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