The Union Township Board of Trustees will soon be considering a controversial policy to allow employees to “retire” with their full pensions and continue their employment with Union Township. This is an inappropriate indulgence unique to government employees and is known as Double Dipping.
To be fair, the proposed policy is optional for employees and has some built-in limitations. Although participating employees will be back on a State of Ohio pension program and receive full benefits, their Double Dipper salary will be limited to 90 percent for up to five years. Any and all limitations could always be modified or eliminated at any time by the Board of Trustees.
One of my major concerns is the creation of a “glass ceiling.” The proposed policy may have a chilling impact on employee retention of our best and brightest. Current employees who have earned promotions, and are waiting on retirements, may have to wait an additional five years or leave Union Township. That’s not fair to them and the taxpayers will incur additional costs to replace them. Another problem is the additional administrative time and legal fees to utilize the policy.
This practice is virtually unheard of across corporate America. Nobody gets to retire with their full pension and then stay on the company payroll with full benefits. That said, it is not uncommon for companies to rehire “retired” employees as 1099 independent contractors (consultants) with no or limited benefits.
Double Dipping is an abuse of the taxpayer subsidized state pension system. That is why I sponsored a bill in the Ohio General Assembly during the 2018 session named Double Dippers Inappropriately Privileged (DDIP). It was House Bill 708. It failed because the members of the General Assembly like to Double Dip also. It’s a great deal for government workers and the excess cost is simply billed to you; the taxpayer.
To be clear, I have no animosity toward any government employee making rational financial decisions within the law. My problem is with the law and local governments enabling Double Dipping.
Furthermore, I have no problem with state and local governments hiring retirees from any private or federal retirement system. An out of state retiree is okay too. None of them would be Double Dipping on a State of Ohio government pension plan.
In case you’re wondering, I am eligible to be a Double Dipper. As you would expect, I’m leading by example and continuing to refuse the privilege.
Although not confirmed, my expectation is that the new Double Dipper policy will be considered and voted on at the Trustees meeting on January 14, 2025, at 6 p.m.
Now that you know what I think, I want to know what you think. Call me at home at 513-753-6440 or John@BeckerGOP.com. You can also call 513-752-1741 to speak with any staff member at the Civic Center.
John Becker has been a Union Township Trustee since January 2022. He previously served as a State Representative from 2013 – 2020 until forced out by term limits. You can subscribe to his political newsletter “The Becker Report” at BeckerGOP.com.