*Direct deposit notice or check stub will be mailed to all benefit recipients.

You will receive a check stub whenever there is a change to your benefit, such as health care premium change, a tax withholding change, or a bank account change.

SERS strongly encourages all retirees to have their pension payments paid directly to a bank or credit union. Direct deposit of your funds is the only way to assure that your payment will be available on the first of every month. Direct deposit eliminates any concerns about late, lost, or stolen checks. Since pension checks cannot be forwarded, direct deposit also eliminates delays when you travel during retirement. It is your responsibility to make sure the funds are in your account before writing checks against your account.

If you do not enroll in direct deposit, there is no guarantee that you will receive your payment right on the first of every month. Delivery delays might occur that are beyond SERS’ control, such as lost or stolen checks. You must wait 10 days after the expected delivery date before SERS can begin the process of stopping payment and issuing a new check. This delay will not occur if you have direct deposit.

The bill proposes deferring a reemployed retiree’s pension into an account maintained by the retirement system during the time the person is reemployed. This would prevent a reemployed retiree from receiving a pension and a paycheck at the same time. Once the person retires from public service, the deferred pension money that accumulates in the account while the person was reemployed would be refunded either as a lump sum or monthly annuity.

With pension reform anticipated in 2012, it is likely that changes to reemployment will be discussed at that time.

Dispatch Editorial on H.B. 388

On Wednesday, December 21, the Columbus Dispatch ran an editorial criticizing H.B. 388. The editorial contained a few factual errors that need to be addressed.

First, the Dispatch claimed that the account that would hold pension money during the time a person is reemployed would include interest. While the retirement contributions that a reemployed retiree and his or her employer put into an annuity account does get interest, SERS’ analysis indicates that the bill does not specify whether the deferred pension account would be interest-bearing or not.

Another misstatement was that the pension systems are “burdened” by reemployed retirees when in fact reemployed retirees are cost-neutral to SERS. Reemployed retirees still contribute 10% of their salary to a retirement annuity account, and employers still contribute 14% of earnings to SERS. However, upon retirement, the refunded amount will equal the employee 10% contributions, only 8% from employer contributions, and 4% interest if the contributions are held by SERS more than one fiscal year.

Finally, the Dispatch also raised the argument that reemployed retirees hurt the public pension systems financially because they can retire at earlier ages and collect a pension for longer than they would have if they kept working. While it’s true that the earlier someone retires the longer he or she would collect a pension, it’s also true that a person would collect a smaller benefit because pension amounts increase as salary and length of service increase.

A Word on SERS’ Stability

Finally, SERS is financially stable and has adequate funding to pay all promised benefits within the next 28 years – well within the 30-year window stipulated in state law. SERS’ financial situation is actuarially reviewed annually by Cavanaugh Macdonald, consultants with an average of more than 25 years of experience serving public sector benefit plans, so the Board knows when adjustments need to be made. SERS has had pension reform changes pending in the legislature since 2009. These age and service changes are necessary to address increasing life expectancy rates that have the potential to financially strain SERS in 20-30 years. 

SERS has a fiduciary responsibility to keep the pension fund financially sound to pay promised benefits long into the future. While periodic changes in benefits, such as those in our pension reform plan, may be required to keep the fund solvent, a taxpayer bailout is not necessary now nor is it an option to be used in the future.

In FY2011, SERS had 4,247 reemployed retirees, or about 6% of SERS’ retiree population. Only 2,800 worked enough hours to be considered full time. SERS’ reemployed retirees received average earnings of $14,532, which is below the 2011 federal poverty guidelines for a two-person household.

This is a $15.50 decrease from the 2011 monthly premium of $115.40. All Medicare enrollees are required to pay a Part B premium directly to Social Security.

SERS will continue to provide eligible benefit recipients with a monthly $45.50 reimbursement to help cover the cost of the Part B premium. To qualify, you must be a benefit recipient who is eligible for SERS’ health care and must not be receiving a Medicare Part B reimbursement from another source.

The Ohio Attorney General's Office has received several reports from consumers who have received these calls. 

“If you receive an unexpected call saying you need a new Medicare card and must provide your Social Security number, it’s a scam,” Attorney General DeWine said. The AG also says that “while many consumers recognize the scam and hang up on the caller, others do not realize the ploy until they have already provided their personal information.”

To report a scam to the AG’s office, visit http://www.ohioattorneygeneral.gov/, or call 800-282-0515. For more information on these potential scams, visit http://1.usa.gov/rqA8gj ...... 

If you receive a similar call, do not give out any personal information and call SERS toll-free at 800-878-5853 to report the incident.

SERS does not place phone calls to members and retirees, or send staff door-to-door to ask for personal information. However, if you call us, we will ask you a series of questions to verify your personal information and identity.

When you call us, we need your name, Social Security number, date of birth, telephone number, and email address, if you have one. We ask for this information in order to protect your personal SERS information.