Ohio must put check on double dipping
To get an interesting perspective on just how bad double dipping government employees are in Ohio, let’s look at New Hampshire.
In New Hampshire, law allows pension-collecting members of the state retirement system to work ”part-time,” up to 32 hours per week, for ”other” retirement system employers.
The New Hampshire Retirement Security Coalition, a group designed to advance union points of view, hired the chief actuary for Bolton Partners, an East Coast independent employee benefits consulting firm, to study the state’s retirement system. Here are some of Bolton Partners’ discoveries:
Few policies create greater public outrage toward government employees than double dipping.
Double dipping is a ”material unfairness” and ”PR disaster.”
Double dippers ”become a premature drain on a retirement system’s assets.”
”If employees are retiring earlier than the actuarially projected age, those projections become skewed, increasing the total cost of the plan.”
The report concluded that encouraging workers to retire early so they can double dip weakens the pool of retirement income that supports the program and leads to greater employer (taxpayer, actually) contributions.
This is in New Hampshire where, as we stated above, double dippers can return to work ”part-time” for ”other” retirement system employers. Imagine, then, how bad off we are in Ohio where double dippers return to work full-time and may do so for the same employer from which he or she retired.
This is contributing to disasters at all Ohio public employee pension funds.
According to Kevin D. Williamson, author of ”The End Is Near and It’s Going to Be Awesome,” by the time a child born today finishes high school, pension costs in Ohio will eat up more than half of the projected tax revenue for the state, leading to massive education and local government funding cuts.
That’s why unions in New Hampshire are trying to steer the state away from costly practices like double dipping that will lead to large reductions in government employment and, thus, their memberships.