June 3, 2026 · Public Insurance and Pensions Committee · 1,264 words · 5 speakers · 48 segments
Good morning. Welcome to Public Insurance and Pensions. We'll call the meeting to order. Will the clerk please call the roll?
Chair Peterson? Yes. Vice Chair Tuska is excused.
Ranking Member White. Representative Byrd? Yes. Representative Brennan? Representative Claggett? Here. Representative Glasburn? Representative Matthews? Here. Representative Miller is excused. Representative Romer? I'm here. Representative Swearingen? Here. Representative Thomas? Here.
Representative Young has checked in.
We have a quorum present. The minutes from the previous meeting have been distributed. They're on your iPads. Are there any additions or corrections to the minutes? With no additions or corrections, I move that they be approved without objection. Seeing no objection, the minutes are approved. Next, I would call up for the first item of business, substitute Senate Bill 263. We have no testimony that's been presented. Is there anyone who wishes to testify on Substitute Senate Bill 263?
Seeing none, Representative Thomas, would you be interested in making a motion? Thank you, Chair Peterson. I move that Substitute Senate Bill 263 be favorably reported and recommend its passage.
Will the clerk please call the roll?
Chair Peterson?
Yes.
Representative Byrd.
Yes.
Representative Claggett.
Yes.
Representative Glassburn.
Yes.
Representative Matthews.
Yes.
Representative Romer.
Yes.
Representative Swearingen.
Yes.
Representative Thomas.
Yes. With eight affirmative votes and zero negative votes, the substitute Senate Bill 263 is favorably reported. Please remember to sign the report that Kylie has. As you sign a name, indicate with a star if you have an interest in being a co-sponsor. I'll hold the roll open until 11 a.m. Next, we would call up Representative House Bill 833, Representative Lapton.
Lampton? Wow. I'm not sure what's in this coffee, but it's good stuff. So Representative Lapton please save me and give some eloquent sponsor testimony We met Chair Patterson Peterson and nobody else is here Members of the House Insurance and Pension Committee, thank you for the opportunity to provide sponsor testimony, House Bill 833. This is a common sense update that would ensure Ohio's public employees have secure financial futures. So very simply, the bill requires the Ohio Public Employee Retirement System, State Teachers Retirement System, and School Employees Retirement System, now you know they all have initials and we'll get to those, to include lifetime income options with their defined contribution offerings. So lifetime options very much like annuities. So just as a refresher, annuities, when you have a basically an annuity is a big pile of money and they have payout options and one of them is a lifetime benefit. So basically the life insurance company will calculate the age of the based on the, what's the word I'm looking for, the mortality of the person and calculate based on the pot of money what that monthly payout would be, and that person gets that money forever until they pass. Other options are joint and survivor. So if there's married folks, then they look at both of their mortality rates, and one of them passes, the other one continues to receive benefits. And then there's other options as well. Lifetime income options allow participants to convert their retirement assets into a predictable, regular stream of income for the rest of their life. This way, members can get the best of both worlds, the consistency and stability of a defined benefit plan, but a possible higher yield when selecting the defined contribution plan. Importantly, participants in these retirement plans will be under no obligation to opt for these options. In other words, they are still free to choose whichever plan is best for them. My goal is to ensure that the lifetime income option is available for those who have selected the defined contribution plan This was also introduced, I actually introduced this at NCOIL as a resolution, so we're looking at it nationally as well. Currently, OPRS, S-T-R-S, are required to have the defined contribution plans to their members, so that option is already available to them. SIRS is permitted to offer a defined contribution, but they've decided not to. We're in conversations with them about their defined contribution options, and we have scheduled an upcoming conversation with SIRS to basically understand why their members opted not to have this offering. And we're going to continue that dialogue to see if we can basically talk them into it. Again, the whole purpose of the bill is to add the lifetime income when an employee selects the defined contribution plan. That's the whole key to this. So thank you for your attention and happy to answer any questions.
Thank you for your testimony. Are there questions for the sponsor?
I thought I did a great job.
You did do a great job.
Thank you.
I don't have it yet.
You're adding something to one of the plans or just taking what's in other plans and extending it to another plan?
It's sort of an addition. If you have the defined contribution plan as an employee, and you know what that is.
You're right.
Okay. Right. It adds the option for that lifetime income payout. So basically, currently, when you do a defined contribution, you retire, you have a pot of money.
Right. And do with it what you want. There is no, it's just a pot of money.
Right. So if at that time you say, I want to receive the lifetime income option, you kind of annuitize it at that point. And every month you get a check So it is an addition but the whole I guess purpose of it or thrust of it is to say to the employee this is a lifetime guaranteed lifetime income Again very very similar to the defined benefit which is very very similar to that You know defined benefit I going to get 70 of my pay forever okay
This is similar, but the payment amount is calculated based on the pot of money
and your age at that time. Did I get your question? That helps. Yeah, because currently it's not
there. So if you have the defined contribution, you have your pot of money,
the lifetime income option isn't necessarily
there as an option. We just want it to be an option.
Anybody else? Chair? Good.
This is voluntary. The participant gets to decide what they do. There's no requirement to do this, correct?
Correct. All we're requiring, if you want to call it that, is that this be an option for those that have the defined contribution plan.
Correct. Thank you.
Yeah. The plans don't even have to offer the defined contribution. They may offer it.
And that remains unchanged. Other questions for the sponsor? Thank you for joining us. This concludes first hearing.
Thank you.
Next, I would call up amended substitute bill number 343, Representative Manning, for sponsor testimony. As you may know, there are several things going on in the Senate today, and Representative Manning asks that we take his testimony as written testimony only as he runs judiciary. So is there anyone else that would like to speak on his behalf for sponsor testimony? I know that's very tempting. If not, that concludes the first hearing on Senate Bill number 343. And at this point, the committee is going to stand at ease as we wait for Representative White to get here. The committee members are welcome to leave, and we will stay and wait for Representative White. Enjoy your day. The committee is at ease. Welcome back. I would call committee back to order. With no other business before us, we are adjourned. Have a great day.