2011.09.14 Russ Griggs: What you don't hear about retirement

Written by David Green.

Earlier this month, the Buckeye Institute issued a report entitled, “Taxpayers on the Hook: Taxpayer Contribution Rates for Ohio Government Pensions Outpace National Averages.” The report claimed that the Ohio Teacher Retirement employer rate (the part the board pays) was ninth highest out of the 34 states with teacher retirement programs. The Report left out the fact that 22 of those states contribute to Social Security in addition to teacher retirement plans.

Ohio teachers do not belong to Social Security. They contribute 10 percent of their earnings to the state system, STRS. Combined with the 14 percent paid by the school board, as part of their compensation, adds up to 24 percent going into their retirement plan. Social Security members pay less than half that amount, and their employers pay less than 50 percent, soon to be further reduced.

When you compare Ohio to other states with retirement plans, not participating in Social Security, Ohio is 20th out of 34 states, being well below average. Of the 22 states with both Social Security and retirement systems, 18 are above the 14 percent paid in Ohio. It takes more than modern math to make 20 out of 34 and 18 out of 22 above average. (Unless you hold the chart upside down)

I started teaching in Maryland in 1974. My starting pay was twice what teachers were starting at in Ohio. During my entire career I made significantly less than educators in Michigan and Pennsylvania. The difference was Ohio having a retirement system that invested a much greater percent of my compensation resulting in a much better retirement. 

STRS has recommended changes to the legislature to keep the system solvent for many years to come. Can the same be said of Social Security? 

(Statistics above are from the Ohio State Retirement System) 

– Russ Griggs

Fayette Superintendent

  • Front.splash
    Water Fun—Carter Seitz and Colson Walter take a fast trip along a plastic sliding strip while water from a sprinkler provides the lubrication. The boys took a break from tie-dyeing last week at Morenci’s Summer Recreation Program to cool off in the water.
  • Front.starting
    BIKE-A-THON—Children in Morenci’s Summer Recreation Program brought their bikes last Tuesday to participate in a bike-a-thon. Riders await the start of the event at the elementary school before being led on a course through town by organizer Leonie Leahy.
  • Front.drum
    on your mark, get set, drum!—Drew Joughin (black shirt), Maddox Joughin and Kaleea Braun took the front row last week when Angela Rettle and assistants led the Stair District Library Summer Reading Program kids in a session of cardio drumming. The sports and healthy living theme continued yesterday with a Mini Jamboree at Lake Hudson State Park arranged by the Michigan Department of Natural Resources. Next week’s program features the Flying Aces Frisbee show.
  • Front.art.park
    ART PARK—A design created by Poggemeyer Design Group shows a “pocket art park” in the green space south of the State Line Observer building. The proposal includes a 12-foot sculpture based on a design created by Morenci sixth grade student Klara Wesley through a school and library collaboration. A wooden band shell is located at the back of the lot. The Observer wall would be covered with a synthetic stucco material. City council members are considering ways to fund the estimated $125,000 project and perhaps tackling construction one step at a time.
  • Front.train
    WRECKAGE—Morenci Fire Department member Taylor Schisler walks past the smoking wreckage of a semi-truck tractor on the north side of the Norfolk and Southern Railroad tracks on Ranger Highway. The truck trailer was on the south side of the tracks

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