Pension interest change upsets Ohio firefighters

5:41 AM, Apr 23, 2012   |    comments
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COLUMBUS, Ohio -- Some Ohio firefighters are upset that the interest rate they earn on their retirement accounts has been cut in half.

The Columbus Dispatch reports the Deferred Retirement Option Plan, or DROP, had paid 5 percent interest since it began in 2003. But starting this month, the Ohio Police and Fire Pension Fund is paying about 2.2 percent interest on those accounts.

The roughly 3,500 program participants can defer retirement for years while pension payments accumulate with interest.

Battalion Chief Kevin Reardon of the Columbus Division of Fire calls the interest-rate change an attack on emergency responders' finances and security.

Pension fund leaders disagree, saying they simply can't pay out more than the amount earned.

The Fraternal Order of Police of Ohio didn't oppose the rate change.

The Associated Press

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