A bill intended to limit the use of overtime in calculating pensions for county and state workers has hit a roadblock in the House, where the Labor and Public Employment Committee refused to advance the measure.

State Rep. Karl Rhoads, committee chairman, said he held House Bill 2488 Tuesday because he believes the way to address excessive overtime is through better management, not through legislation.

"It’s largely a management issue," Rhoads said. "If you don’t offer overtime, you can’t work it."

The state Employees’ Retirement System is pushing the measure to address unexpected increases in pension benefits and the system’s unfunded liability due to spikes in nonbase compensation in workers’ final years of employment.

Because pensions are calculated in part on the highest years of compensation, employees who work unusually large amounts of overtime toward the end of their careers can significantly boost their retirement benefits.

The practice, known as "pension spiking," has contributed to an unfunded liability of more than $8 billion, though it represents only a fraction of that tab.

Public worker unions have strongly opposed the bill — and its Senate companion, SB 2750 — saying the proposed legislation unfairly penalizes employees. They argue that all overtime is approved by supervisors and, if an overtime problem exists, that’s a reflection of management, not the rank and file.

Two Senate committees advanced SB 2750 last week, saying the state must make more inroads in addressing the unfunded liability problem. If the bill passes the Senate, it would face an uncertain fate in the House, having to go before Rhoads’ panel again.