Double-dipping a common practice in Ohio; report shows more public-school superintendents collect pensions and paychecks

Double-dipping a common practice in Ohio;

Newspapers report that more Ohio public-school 

superintendents collect pensions and paychecks

Known as "retire-rehires" there are more and more public-school superintendents across Ohio enjoying the double-dipping practice of collecting both a pension and a paycheck.

A study by Ohio's eight largest newspapers found:

* One in four public school leaders in Ohio's 614 districts are double-dipping.

* One in two educational service center superintendents are double-dipping. In fact, the percentages are higher among the heads of the Educational Service Centers, the former county school districts merged in 1995 to create 56 support centers for local school districts.

* More than 150 (about 27 percent) of the state's 613 superintendents are collecting paychecks and pensions at the same time.

* Approximately 32,000 state and local employees collected more than $1 billion in pension payouts last year on top of their paychecks. Three-fourths of those dollars went to State Teacher Retirement System members.

While superintendents say the practice is legal and claim that it is justified because of a shortage of qualified candidates, the Ohio Department of Education says there are thousands of licensed individuals who meet state standards to run school districts.

According to The Cincinnati Enquirer, which participated in the survey, "Superintendents who double dip and the school boards that approve such arrangements defend the practice. Hiring retirees gives them a proven, capable leader at a time when the applicant pool for superintendents is drying up. They also say it saves districts money because retirees often take a lower salary and must pay a larger share of their own health insurance costs."

However, the Enquirer adds, "While it might save a district money over the life of the contract, the pension benefits - which can be as much as 88 percent of the superintendent's pre-retirement salary - are undercutting the long-term viability of the pension funds. State lawmakers and pension officials are considering major rule changes to keep the pension funds afloat, including delaying the age when an educator can start collecting pension benefits and increasing the cost to taxpayers.

For a full review of the newspapers' survey, go to www.toledoblade.com.

Known as "retire-rehires" there are more and more public-school superintendents across Ohio enjoying the double-dipping practice of collecting both a pension and a paycheck.

A study by Ohio's eight largest newspapers found:

* One in four public school leaders in Ohio's 614 districts are double-dipping.

* One in two educational service center superintendents are double-dipping. In fact, the percentages are higher among the heads of the Educational Service Centers, the former county school districts merged in 1995 to create 56 support centers for local school districts.

* More than 150 (about 27 percent) of the state's 613 superintendents are collecting paychecks and pensions at the same time.

* Approximately 32,000 state and local employees collected more than $1 billion in pension payouts last year on top of their paychecks. Three-fourths of those dollars went to State Teacher Retirement System members.

While superintendents say the practice is legal and claim that it is justified because of a shortage of qualified candidates, the Ohio Department of Education says there are thousands of licensed individuals who meet state standards to run school districts.

According to The Cincinnati Enquirer, which participated in the survey, "Superintendents who double dip and the school boards that approve such arrangements defend the practice. Hiring retirees gives them a proven, capable leader at a time when the applicant pool for superintendents is drying up. They also say it saves districts money because retirees often take a lower salary and must pay a larger share of their own health insurance costs."

However, the Enquirer adds, "While it might save a district money over the life of the contract, the pension benefits - which can be as much as 88 percent of the superintendent's pre-retirement salary - are undercutting the long-term viability of the pension funds.
"State lawmakers and pension officials are considering major rule changes to keep the pension funds afloat, including delaying the age when an educator can start collecting pension benefits and increasing the cost to taxpayers."

For a full review of the newspapers' survey, go to www.toledoblade.com.