What happens when you spend much of your first year in office waging war against public employee’s retirement benefits?  Well, anecdotally, the Columbus Dispatch reports this morning you see a massive spike in retirements in the public sector as employees who were already eligible for retirement decide its better to retire now and get the benefits you were promised than risk what Governor Kasich and the GOP legislature is considering taking away.

image So, instead of taking pressure off the state pension funds who had been battered by the collapse on Wall Street that start with Lehman Brothers’ bankruptcy by reducing benefits, Kasich’s proposals have actually put a more immediate strain on them as employees flock to retire en masse before Governor Kasich’s “austerity” measures can take affect.

It’s called the “Law of Unintended Consequences,” Governor. 

Some of this can be attributed to just plain old demographics.  After all the prior records of retirements was from 2008-2010, depending on the pension fund (except for the Patrol.)  There’s obviously going to be a spike as the Baby Boomer generation is entering into retirement age.  But there seems to be little dispute that John Kasich has accelerated it, which, of course, operates to undermine the effectiveness of his pension changes in the first place.

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  • leeseh

    I am one of those who ran for the door because I knew what was coming.  They complain that we can retire at 50?  Most people my age can’t; even with our “Cadillac” wages and retirement.  They are either still paying for that last child going to college, paying off their mortgage or raising their grandchildren.  I am single, so I didn’t have those problems.  But even then, I am living with my mother to take care of her; save what money I have and to help my medical condition (partly caused by stress).  If I had my choice, I would rather have kept working.  But I wasn’t going to take the chance that I would loose what I had worked 30 years for and have to work until I was too sick to work and not be able to enjoy what life I have left.  The “brain drain” is enormous and nobody in supervisory positions seems to care.  It has been known for years that quite a bit of the state workforce would be elgible for retirement within a fairly short time.  This has accelerated the process and now they think about it?  Too little, too late.

  • leeseh

    Sorry. lose–not loose

  • Quite frankly, I’m retiring June 30 for this very reason.  I have actually been eligible to retire for 9 years, but I liked my job and was keeping on. Now, this didn’t move my plans up by much, I was going to leave either at the end of this year or early next year, but once SB 5 passed, I wanted to get out before they trashed the whole system.  

  • Wait. Are you saying that “The Market” is reacting negatively to SB5? What’s English for Schadenfreude?

  • Mikev1966

    Great. I have 12 years (maybe 14 if they raise the requirement to 32 years of service). Looks like I am in that special little sweet spot to get totally screwed over as far as my retirment goes.

    But no worries. If my reduced pension allows for more tax cuts for multi-millionaires – most of whom sit around the pool all day watching their stocks and doing blow – all will be well. You see, that will surely trickle down on us all like it has for the past 30 years.

    Where I work the retirees are not being replaced. We are in full blown attrition mode. So if you think this provides hope for recent college grads to grab one of these job openings, think again. There won’t be any job openings.

  • Mikev1966

    Great. I have 12 years (maybe 14 if they raise the requirement to 32 years of service). Looks like I am in that special little sweet spot to get totally screwed over as far as my retirment goes.

    But no worries. If my reduced pension allows for more tax cuts for multi-millionaires – most of whom sit around the pool all day watching their stocks and doing blow – all will be well. You see, that will surely trickle down on us all like it has for the past 30 years.

    Where I work the retirees are not being replaced. We are in full blown attrition mode. So if you think this provides hope for recent college grads to grab one of these job openings, think again. There won’t be any job openings.

  • Anonymous

    Starting this year, police and firemen who went into the DROP program when it was first instituted MUST retire, or they will lose their rather generous lump sum retirement benefits. No surprise to those who where actually paying attention.

    And this has nothing to do with Kasich, as much of an idiot as he is.

  • Xx

    Typical Republican logic.   New jobs do not open up because people retire.   It might be a new job for the person being hired, but it is not a new job in terms of job creation.

  • Anonymous

    Congratulations for writing the dumbest thing I’ve read on the Internet in awhile.  Competition was steep but you beat piano cats on YouTube…

  • Tarfam325

    We had 20 teachers retire in our school district (not one of whom was “sitting around collecting a check at the end of their career).  Thanks to governor Kasich’s proposed cuts, 2-3 of these jobs will be filled and the rest will be absorbed by other teachers who will have classes with more students and less resources.  So, your “keep up the good work” comment is both uninformed and inaccurate.  There will still be very few jobs for college graduates from this.  Public sector jobs are extremely difficult and challenging in the first place.  Fewer talented people will enter the field of education because they will no longer be able to make a decent and fair living thanks to our governor and Ohio legislators.  Then, if our legislators have their way and “steps” and “level of experience” are moved from pay scales, then college graduates TRULY will never be able to find work without at least a Master’s Degree, because a school district is often going to hire someone with a Master’s Degree and experience before they will hire someone fresh out of college.  The legislators had some good ideas, but they just couldn’t stop. 
         It is Governor Kasich’s childish “get even” mentality (coupled with his “private sector” mentality to take care of his buddies and campaign contributors) that is seeking revenge on public sector workers and it will be his undoing.  You cannot claim to be broke and SLASH public school funding to exemplary school districts and then turn around and QUADRUPLE funding to PRIVATE, FOR-PROFIT charter schools (who just so happened to be campaign supporters of the governor’s and several other Republican legislators) and get away with it.  The problem is, he got away with his sneaky, under-handed schemes in the shady world of Wall Street.  But he’s in the “real” world now… and the public sector is filled with informed, educated and honest people who will follow his trail and expose him for the crook he is and hold him accountable for all of the smoke he’s blowing out…  of both sides of his mouth! 

  • The English for Schadenfreude is Schadenfreude.  The English are much too polite to come up with a word like that for themselves.

  • Anonymous

    I do believe that there is a hiring freeze in place, so there are ZERO “new job openings” no matter how many state employees retire.  Putz.

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