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WKEF-TV ABC 22 News :: News - Waste Watch

Waste Watch: Is Retire/Rehire Practice Costing Taxpayers Money?

WASTE WATCH -- Thousands of public employees in Ohio take advantage of a legal practice known as retire/rehire or double dipping, which means they are collecting a salary and pension at the same time.  How it works is employees retire and then get re-hired, sometimes in the exact same position.  Now one state lawmaker is looking to put an end to the practice by making it illegal.

"Retire means to quit working.'', State Rep. Rex Damschroder (R-Fremont) says, ''When you're done working that's retired  I think our pension system, our retirement system is set up so when those state workers retire, there will be money there for the rest of their lives to help support them. Well, when we have people out there who are following the law - and this is not an attack on the people who are double dippers - it's an attack on the state legislators for not correcting the problem."

State Rep. Damschroder is aiming to do just that, he has a bill in the state house to end the retire/rehire practice, "If we don't make changes, this retirement system will be unsustainable."

Some groups fundamentally take issue with double dipping, including the conservative think tank The Buckeye Institute, who told us more than 30,000 people take advantage of retire/rehire costing tax payers close to a billion dollars a year.

Not everyone agrees though, some say double dipping actually helps taxpayers.



20.55-.11 Pete Rife...Oakwood
"They have to pay the full retirement for the person that's retired plus they have to pay a new salary for the person they're hiring'', Pete Rife of Oakwood argues, ''and therefore they're actually paying more than if the person didn't retire and was rehired at a lower salary."

Some government officials say often times, the retirees are re-hired for a decrease in pay, and they collect a portion of their pensions, and that would actually equal a savings to the public.

David Romick, with the Dayton Education Association which represents Dayton teachers, says his union does not have an officials position on retire/rehire, but he's done some thinking about it.  While he doesn't have a problem with the money part of it since he sees no proof it actually costs tax payers more, it's the policies around retire/rehire that Romick takes issue with,  specifically in a lay-off situation.

"A younger person, for example, a first second year teacher, with a family, kids, a house payment and all the things that young people deal with'', Romick says, ''would be laid off before that retired person who actually is drawing a pension and a salary would be laid off."

State Rep. Damschroder says that just makes his stance even stronger, ''There's a few rare situations where a few districts might be able to finagle the books around to save a few bucks, overall, it's costing the taxpayers more because of the bloated retirement system."

Representative Damschroder's bill is in a House committee and he's confident his fellow lawmakers will support it.

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Waste Watch: Is Retire/Rehire Practice Costing Taxpayers Money?

Wednesday, July 18 2012, 02:37 PM EDT

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