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

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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.

  3. Gary says:

    I am continually impressed by the diligence and dedication of these PERI men and women. Those tax dollars would have been future benefit reductions for us if not for these people and their efforts on our behalf. Thank you PERI. Well done indeed.

  4. Carolyn Morgan says:

    Well done and Thank You!

  5. Sheila says:

    Has anyone else been affected by OPERS issuing separate 1099R’s beginning for the 2017 tax season, for minors? All previous years I’ve recieved only one 1099R, but now they are splitting the survivors benefit in half between me and my minor son and not only do I have to file a tax return for him, I also owe the IRS $3,000!!! Because he is a minor and it kicked in the alternative minimum tax. I can’t get an explanation from OPERS. First they said the IRS changed the rules. Then they said they’ve been doing it wrong all these years…I’m beyond frustrated.

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