Lake County auditor urges ban on government 'pension pickups' in support of House Bill 473

Christopher Galloway, Lake County auditor, told the Public Insurance Committee that House Bill 473 would remove a common but often-hidden practice in local government contracts: employers picking up employees' pension contributions. Galloway said the change would make "true compensation" visible to taxpayers and discourage what he described as concentrated benefits for top administrators.

Galloway identified himself as the Lake County Auditor and second vice president of the County Auditors Association of Ohio and said the association had not yet taken an organizational position on HB 473. "House Bill 473 seeks to correct that by eliminating the ability of a government agency from picking up the employee portion," he said, arguing the change would allow citizens to see what officials truly earn.

Committee members pressed Galloway on the bill's practical effects. One member asked whether removing the pickup would simply force employers to raise base pay to offset the loss, potentially increasing payroll costs; Galloway responded that pay offsets are contract negotiations, not an automatic requirement. "We do it all the time in negotiations when it comes to health care costs," he said, adding that the law would require transparency so voters and watchdogs could assess choices.

Ranking Member White emphasized a separate concern: many public employees do not receive Social Security, and their pension plans function differently from private-sector retirement accounts. White noted that pickup arrangements are typically the product of bargaining. Galloway said he was not a tax attorney but that he was not aware of any federal law that would prevent the state from prohibiting pension pickups.

Members also asked whether other benefits—vehicles, travel, cell phones—are similarly hidden. Galloway described an audit finding in his office that a six-car county fleet was being used as daily commuter vehicles; he said he reduced that fleet to two vehicles and tightened controls. He described routine uses of mileage and overnight reimbursements when public employees travel on official business.

Galloway said HB 473 was designed to apply uniformly rather than single out specific job titles, noting that a previous budget provision on pickup was placed in the budget and later vetoed. He told the committee that several county auditors had privately indicated support for the bill but that the association would not meet officially on the matter until its November conference.

The committee approved the minutes from its previous meeting without objection earlier in the session. No committee vote was taken on House Bill 473 during this hearing; Galloway's testimony concluded after questions and the chair adjourned the meeting.

The Public Insurance Committee did not schedule further action on HB 473 during this session; the bill remains under committee consideration.