To amend sections 145.47, 742.31, 3307.27, 3309.47, 4117.08, and 5505.15 of the Revised Code to prohibit a public employer from paying employee contributions to a state retirement system.
Summary
HB473 would prohibit public employers in Ohio from paying the employee share of contributions to state retirement systems. The bill amends provisions governing the Public Employees Retirement System (PERS), the Ohio Police and Fire Pension Fund, the School Employees Retirement System (SERS), the State Highway Patrol Retirement System, and related collective bargaining law. In practical terms, it would require the employee contribution to be deducted from the employee’s own pay and would bar an employer from covering that required contribution on the employee’s behalf, while still allowing those amounts to be treated as employer contributions for certain state and federal tax purposes.
The bill also makes a related change to Ohio’s public-sector labor law by specifying that, for collective bargaining agreements entered into on or after the effective date, a public employer’s payment of an employee’s required retirement contribution is not an appropriate subject for collective bargaining. For school district and other public school employees, the amendments to PERS and SERS would apply only to employment contracts entered into on or after the effective date. The bill repeals the existing versions of the amended sections and replaces them with language that removes employer-paid employee retirement contributions across the affected systems.
Impact
HB473 would alter the statutory framework for public employee retirement contributions by eliminating the option for public employers to pick up or pay the employee-required contribution in the affected retirement systems. This would affect state agencies, local governments, school districts, police and fire employers, and highway patrol employment arrangements, as well as employees and unions negotiating compensation packages. It would also narrow the scope of collective bargaining under Chapter 4117 by removing employer-paid retirement contributions from negotiable subjects for future agreements, potentially changing how public-sector compensation is structured and bargained in Ohio.
Sentiment
Based on the bill text and available context, the measure appears to be framed as a policy restriction on employer-paid retirement contributions rather than a broad benefit expansion, and it was only introduced with no recorded committee testimony or votes in the provided materials. Because there are no transcripts or roll calls, there is no documented public debate in the record provided. The overall tone of the bill is procedural and fiscal, focusing on who bears the cost of employee retirement contributions and how that issue is treated in labor negotiations.
Contention
The main point of contention is likely the shift of retirement contribution costs from employers to employees, especially for public workers whose compensation packages may have been negotiated with employer pickup of contributions in mind. Public employers may view the bill as a way to standardize contribution responsibility and limit future cost growth, while employee organizations and unions may object that it reduces take-home pay or removes a bargaining item. Another likely issue is the bill’s impact on existing and future collective bargaining agreements, particularly for school employees and other public workers covered by contracts entered into after the effective date.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To amend sections 3505.01 and 3505.10 of the Revised Code to modify the deadline for a political party to certify its nominees for President and Vice-President to the Secretary of State.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To delay the deadline for a major political party to certify its presidential and vice presidential candidates to the Secretary of State for the 2024 general election.