PERI Supported Removal of UBIT from Federal Tax Reform Appears to be a Done Deal

House Committee Holds Second Hearing on COLA Reduction Bill
December 14, 2017
OPERS Announces Process for Special Election to Replace Maurer
December 29, 2017

PERI Supported Removal of UBIT from Federal Tax Reform Appears to be a Done Deal

(December 18, 2017)  The federal tax reform package to be voted on later this week will not have a provision that would have cost OPERS and other public retirement systems millions of dollars in new taxes.  The Unrelated Business Income Tax (UBIT) proposal originally in the U.S. House passed version of the tax reform package would have, for the first time, applied this tax to public sector retirement systems across the country such as OPERS.  Investment transactions executed by the retirement systems have been tax-exempt but the new rules would have allowed for the tax to be charged and collected by the federal government.


PERI along with OPERS and other public retirement systems here in Ohio and in other states lobbied the House and Senate Conference Committee reviewing the tax bill to strip the provision from the final bill reported out on Friday.   The compromise bill will be voted on by Congress and sent to the president yet this week.  The provision, had it been included in the final report, would have subjected OPERS to as much as $40 million or more in new taxes every year and placed an additional burden on public sector retirement systems that in our opinion was completely unnecessary.


  1. David says:

    Good Lord. Thanks PERI for recognizing and opposing this so quickly in the foolish whirlwind of GOP tax reform deals. Who knows how many other groups may have been adversely affected because they weren’t aware or had time to oppose. You have to wonder also why we didn’t hear from OPERS on this matter…
    I’ll contact legislators now, as you recommended. Our voices need to be heard before more damage is done.

  2. Mar says:

    Well done PERI.

Leave a Reply to David Cancel reply

Your email address will not be published. Required fields are marked *