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Committee holds first hearing on bill to add DROP for OPERS law‑enforcement members
Summary
The House Public Insurance and Pensions Committee heard sponsor testimony on House Bill 73, which would let OPERS law‑enforcement members participate in a Deferred Retirement Option Plan (DROP) for up to eight years to improve parity with other law‑enforcement retirement systems; no vote was taken.
The House Public Insurance and Pensions Committee held a first hearing on House Bill 73, which would require the Ohio Public Employees Retirement System (OPERS) to establish and administer a Deferred Retirement Option Plan (DROP) for OPERS law‑enforcement (PERS LE) members.
Representative Hall, a sponsor, told the committee the bill was brought by sheriff's deputies who currently lack the option and said the proposal is modeled after DROP programs already in place for the Ohio State Highway Patrol Retirement System and the Ohio Police and Fire Retirement System. "This legislation was brought to us by sheriff's deputies who currently do not have this option," Hall said in proponent testimony.
Representative Kevin Miller, the bill's joint sponsor, described the program mechanics: a retirement‑eligible officer could lock in a retirement benefit while continuing active service, have that benefit deposited into a DROP account for up to eight years, continue receiving salary and employer health coverage, and then retire to access the deposited funds. "The program is designed to be cost neutral," Miller said, arguing the measure would help retain experienced officers and allow agencies to plan for turnover.
Committee members questioned whether OPERS supports the change. Representative Bridal asked about OPERS's position; sponsors reported OPERS is "concerned" and currently offers a different option called PLOP. Sponsors said many officers prefer DROP over PLOP because PLOP delivers a taxed lump sum and reduces a retiree's ongoing pension, while DROP locks a calculated benefit and lets the member continue working while accruing the deposited amount.
Members also raised governance and budget questions, noting a separate budget provision to move deferred‑compensation governance under the OPERS board. Sponsors said they would need to consult OPERS leadership about that question.
The committee took no vote on HB 73 during the session. The hearing concluded after members asked clarifying questions; sponsors and committee staff said proponents and administrators could provide additional operational details and fiscal analysis in subsequent testimony.
The committee adjourned without taking formal action on the bill.
