The Ohio House of Representatives crafted a defined benefit plan for workers of private sector employers. It is the first state proposal using a DB plan instead of a defined contribution plan.
Introduced on May 19, HB. 645 would make an arrangement by which private sector employers would let workers to have payroll deduction contribution remitted to a retirement savings program. Contribution paid by workers to have payroll deduction contributions remitted to a retirement savings program. Contributions paid by employers and employees into the fund would be utilized solely to pay benefits to the plan participants, the cost of program administration, and investments made for the benefit of the program. Participating workers are permitted to opt out at any time.
Nonetheless, those who do would not receive any refund of prior contributions except as required by federal law. Workers who do not participate are permitted to change that election and become a participant at any time.
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