10/14/2025

House Bill 473

Lead Sponsors: Representative David Thomas

Status: First hearing in Public Insurance and Pensions (October 8, 2025)

Description: The bill would prohibit a public employer from paying employee contributions on an employee’s behalf to a state retirement system. This practice is sometimes referred to as “picking up” the employee contribution.

There are two forms of “pick up” plans. One, called the salary reduction method, sees the employer reduce the employee’s gross salary by the amount of the contribution to the retirement system. The other, called the fringe-benefit arrangement, the employee does not deduct the contribution and funds it fully.

According to the Legislative Service Commission, only the fringe-benefit arrangement method is banned by the bill.

Currently, employee contributions to the State Teachers Retirement System are the only contributions that an employer has explicit statutory authority to “pick up,” but generally the practice can be included in collective bargaining agreements.

If the bill is enacted, collective bargaining agreements entered into on or after the bill’s effective date will not be permitted to authorize the fringe-benefit arrangement.

HB 96, the state operating budget, included a provision banning this practice for school administrators, but the provision was vetoed by Governor Mike DeWine.

CCAO Position: No position (as of October 2025)