Pensions lurk over state, local governments

July 24, 2010, Fremont News-Messenger

BY JESSICA ALAIMO

Special to the News-Messenger

The good news first: We’re all living longer.

The bad: It’s costing the state and local governments a ton of money.

Since the average person spends many more years in retirement than in years past, there is a looming question of how to pay for it.

Most private sector employers have responded by dropping the traditional pension plan in favor of a 401(k) system, in addition to Social Security benefits. However, public employees still pay a determined amount into one of Ohio’s five public pension funds throughout their working careers. Then, they are guaranteed a pension for the rest of their life, the amount based on their earnings and years in public service.

That guarantee comes at a price — one that cash-poor state and local governments are struggling to pay for. Unless substantial changes aren’t made to Ohio’s pension systems, the funds will need to come from somewhere.

For taxpayers, that could mean fewer government services, higher taxes or both. For retirees, it could mean working longer before they are eligible to retire, and lower payouts when they do.

Ohio pension Q&A

July 24, 2010, Fremont News-Messenger

By JESSICA ALAIMO

CentralOhio.com

Unfunded actuarially accrued liabilities. Benefit accrual rate. Solvency. Fiduciary net assets.

STRS, FAS, YOS?

Yow.

Understanding Ohio’s public pension system — and why it’s a ticking time bomb that is threatening Ohio’s budget — can be daunting.

Here are some questions and answers that will help you wade through all the acronyms and financial jargon.

Is wind power the solution?

July 11, 2010, Mansfield News Journal

BY JESSICA ALAIMO AND RUSS ZIMMER

CentralOhio.com

James Gabriel of Mount Vernon said it was a moment of weakness that led him to install a wind turbine on his farm two years ago.

It cost him $70,000, offset by a $25,000 grant through the Ohio Department of Development. On average, the turbine generates 10 percent of his electricity, and at current rates will take 25 years to pay for itself.

Despite the recent buzz on alternative energy, residential wind turbines remain a novelty in Ohio. They are scattered about in pockets, mostly in the northern part of the state. They remain a rarity in southern Ohio, where strong winds are scarce and electric rates are cheap. They are more common in northern Ohio.