Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Police And Fire Pension topic
No spam. Unsubscribe anytime.
Ohio Police & Fire Pension Fund: leaders say long legacy underfunding and unchanged employer rates strain fund
Summary
A representative of the Ohio Police & Fire Pension Fund told committee members the fund is about 70% funded, that historical underfunding and unchanged employer contribution rates have left the fund strained, and that health coverage changes reduced volatility in retiree health costs.
A representative speaking for the Ohio Police & Fire Pension Fund told the House Public Insurance and Pensions Committee that OP&F is roughly 70% funded and faces a long history of underfunding and employer contribution rates that have not adjusted to meet liabilities.
The presenter — addressed during the hearing as “Mary Beth” — said OP&F began in 1965 by consolidating more than 450 municipal plans and inheriting significant liabilities with relatively few assets, which has left a persistent funding gap. “Despite that remarkably with the excellent stewardship of the trustees, the investment staff, and the sacrifices of police and fire members… OP and F is about 70% funded,” the speaker said.
Nut graf: OP&F officials said the combination of an initial underfunding at consolidation, a long period without employer contribution increases, and benefit and market shocks required benefit reductions during earlier reform; the fund’s biggest policy pressure remains employer rate equalization and COLA affordability.
The presenter told the committee OP&F’s employer rates have not changed in about 40 years and cited employer contribution levels (19.5% for police, 24% for fire under the historical structure) as insufficient relative to other covered systems. The fund has a large retiree population relative to actives, with about 31,000 active members and 23,000 retirees (plus roughly 7,000 beneficiaries). The speaker said OP&F’s health‑stabilization actions — including moving to an HRA model and not allowing stipend rollover for reemployed retirees — cut health care volatility from prior levels to an annual range nearer $60–70 million.
Committee members asked about the active-to-retiree ratio and how COLA and retirement age interact with funding. The OP&F presenter said average retirement age has risen (average retiree now about 54) and noted COLA is capped at 3% and often delayed because of affordability. The presenter told members OP&F’s funding period is under the statutory 30‑year threshold but said correcting the legacy underfunding will require action, including potential employer rate changes.
