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Employee, Retiree Groups Unite to Oppose Investment Mandates, Politicization of Retirement Boards

Dec. 8, 2003 - Current and retired Ohio government workers are unanimously opposed to several proposals to change the five public employee retirement funds, according to an unprecedented assembly of advocacy groups.

At a news conference this morning, representatives of 16 groups representing over 1.5 million citizens spoke out against attempts by legislators to force the retirement systems to favor local investment service companies and to politicize the composition of the funds' boards.

"Unfortunately, in their recent efforts to improve retirement systems, the General Assembly has not only opened the door to political influences, but they have also forced the waste of millions of dollars in acquiring investment services," said Bill Winegarner, administrator for the Public Employees Retiree, Inc. and a spokesperson for the group.

"Provisions which mandate that our boards adhere to specific investment quotas with certain stockbrokers and investment advisors will simply take money from Ohio retirees and give it to Ohio investment managers and stockbrokers. Placing political appointees on our pension boards will not increase the integrity or operations of these boards," said Winegarner.

He also criticized a proposal to give the state treasurer extraordinary influence over the hiring and firing of the funds' executive directors. "This power will not guarantee better accountability, oversight or ethics. It will only add political influence to our boards that are currently independent," said Winegarner

He also warned that opposition to these proposals is substantial. "This is not minor opposition. Virtually every retiree, employee, labor, and professional organization stands opposed to these provisions. The lack of support for these provisions - outside of the banking industry and legislators - should indicate that these provisions are not in the interest of public workers or retirees.

Winegarner said the groups stand ready to work with all members of the Ohio General Assembly in crafting legislation that truly addresses accountability, oversight, and ethics issues.

Besides PERI, participants in the news conference included representatives from:

• School Employees Retirees Organization
• Ohio Retired Teachers Association
• Police and Fire Retirees of Ohio
• AFSCME Retiree Chapter 1184
• Ohio State Highway Patrol Retiree Association
• AFSCME United
• Ohio Association of School Business Officials
• Ohio Education Association,
• Ohio Federation of Teachers,
• Ohio Civil Service Employees Association
• Service Employees International Union
• Ohio Education Association
• OSU Office of Government Affairs
• Ohio Association of Public School Employees
• AFSCME Ohio Council 8
• the Inter-University Council of Ohio.

For more information, contact:
Peter Wray, OCSEA, 614-865-2606 (office), 614-630-7068 (pager)
Bill Winegarner, PERI, 614- 891-6868 (office)

Learn more about this issue

• Contact Legislators - Use OCSEA's new E-Action Center to compose and send an email or letter to your legislator.
  
• Spread the Word - Download Pension Reforms Flyer.pdf to share with your friends, family, and co-workers.
  
• In the News - Read what Ohio's major newspapers are saying

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