Ohio Gov. Bob Taft opposes legislation giving the state treasurer the power to appoint and terminate directors of the state's five public pension funds. Orest Holubec, the governor's press secretary, said Mr. Taft also questions provisions in the proposal that would require 70% of pension fund securities trades to be executed by Ohio-based brokers and 50% of externally managed assets to be handled by Ohio money managers. The governor wants legislators to focus on governance and ethics, rather than management, Mr. Holubec said. The Ohio Senate and House each passed pension reform legislation and are working on a compromise bill. Executive directors of the five systems — the Ohio Public Employees Retirement System, Highway Patrol Retirement System, Police and Fire Pension Fund, State Teachers Retirement System and School Employees Retirement System — oppose the two measures. Mr. Taft has said he wants a pension fund reform bill on his desk by the end of the year.
The five Columbus-based plans have a combined $115 billion in assets.