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Sponsors urge switch to actuarial funding to stabilize Ohio Police & Fire pension
Summary
Sponsors of House Bill 280 told the Public Insurance and Pensions Committee the Ohio Police & Fire Pension Fund needs a move to actuarially determined employer contributions to restore long-term solvency, proposing a phased increase in police employer rates to 24% and three-year actuary reviews; no formal vote occurred.
Representative Hall and joint sponsor Representative Abrams presented sponsor testimony on House Bill 280, saying the Ohio Police & Fire Pension Fund (OP&F) must change its funding method to protect benefits for police and firefighters.
"It is our legal obligation to fund our pension programs," Representative Hall said, arguing that recent board decisions to lower the fund's assumed return have limited the fund's options and that the General Assembly must act to increase contributions or reduce benefits. Hall said the board reduced the assumed rate of return from roughly 8% to 7.5%, narrowing the fund’s flexibility.
Representative Abrams said OP&F serves about 27,000 active first responders and 30,000 retirees and recounted past reforms that shifted costs to employees, including changes in retirement age and member contributions. Abrams described HB 280 as a return to an actuarial funding model: police employer contributions would phase from the current 19.5% to 24% over five years, with board adjustments thereafter guided by an actuary review every three years. Abrams also said increases would be capped so rates could not rise more than 1.5 percentage points over any three-year period.
Committee members asked sponsors about local government input, use of the Local Government Fund (LGF) to help offset costs, and whether other pension systems already allow boards to automatically adjust contribution rates. Sponsors said they have engaged employers, employee groups and experts in prior sessions and that LGF or other options could be discussed; they said they have not completed a cross-system comparison of automatic board adjustments.
Several representatives pressed the sponsors on equity and timing. One member noted that first responders generally do not pay into Social Security and therefore rely heavily on OP&F for retirement, and sponsors said that reality underlies the urgency to stabilize the fund. Sponsors acknowledged trade-offs for municipalities facing higher contribution obligations and emphasized the bill’s phased approach and continued stakeholder engagement.
The hearing closed without a committee vote. Sponsors said subject-matter experts will appear in future hearings and that the committee will continue to refine the bill in consultation with local governments, employers and unions.
Next steps: additional expert testimony and stakeholder hearings were scheduled; the committee did not take formal action on HB 280 at this meeting.
