Reps. Stephanie Howse (D-Cleveland) and Juanita O. Brent (D-Cleveland) testified before the House Insurance Committee Wednesday on House Bill (HB) 416, their legislation that would promote financial security and stability for Ohioans after they retire. The bill would create The Ohio Retirement Savings Program (ORSP), a supplemental pension plan in addition to Social Security benefits.
“It’s hard to calculate the impacts of the coronavirus pandemic. Many Ohioans including our older Ohioans lost their jobs and had to dip into their savings to make ends meet. By creating a retirement system for private sector employees, Ohio will be improving the long-term outcomes and providing a more secure future for our citizens during their golden years,” said Rep. Howse.
According to The National Institute on Retirement Security, half of all workers will reach retirement with too little savings to fund it. Employees participating in the ORSP would be enrolled in a defined benefit retirement plan developed by members of the Public Employees Retirement Board.
“Developing the Ohio Retirement Saving Plan is vital to make sure that all Ohioans have a pathway to retire with dignity,” said Rep. Brent. “Retirement should be something to look forward to not a burdensome time.”
HB 416 would:
- Create the Ohio Retirement Savings Program and require participating employees to be enrolled in a defined benefit retirement plan developed by members of the Public Employees Retirement Board;
- Require a private sector employer that does not maintain a tax-exempt employer-sponsored retirement program to deduct a percentage of an employee’s paycheck established by the Board and remit it to the ORSP, unless the employee opts out;
- Prohibit an employer from failing to participate and allow the Board to fine a noncomplying employer;
- Require deductions from employee paychecks and fines against noncomplying employers to be deposited into the Ohio Retirement Savings Fund created by the bill;
- Specify that an employer is not responsible for the administration, investment, or investment performance of the ORSP and that the state is not liable for retirement savings benefits earned by participants.