Action Alert – Public Employer Pension Funding

Urge Opposition to HB 473 – Prohibiting Public Employers From Funding Pensions

On Wednesday, October 29, 2025, OEA testified in opposition to House Bill 473, sponsored by Representative David Thomas (R-Jefferson). The bill would prohibit public employers from paying any portion of an employee’s pension contribution to a state retirement system. You can read OEA’s opposition testimony to HB 473 here.

HB 473 is an attack on the collective bargaining rights of Ohio’s public employees. A prohibition on this type of compensation narrows the scope of bargaining and creates needless disruption for locals who have bargained a pension pickup. This would lead to labor disputes. OEA was joined in opposition by other labor allies such as the Ohio Federation of Teachers, the Ohio Association of Professional Firefighters, and the Fraternal Order of Police of Ohio.

Another argument against the bill is that it would increase costs to taxpayers just to pay an employee the same effective pay rate. If pension pickups are no longer permissible, salaries would need to increase to avoid a de facto pay cut. However, increased salaries also increase other costs to the public employer (employer pension contributions, Medicare taxes, and other salary-based payments).

Urge your state representative to oppose House Bill 473 and reflect how this issue affects you and your school district.