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Council reviews 2026 budgets: OPERS proposes $132.6M operating plan; OP&F health costs rise sharply; HPRS projects a modest decrease
Summary
The ORSC received 2026 budgets: OPERS proposed a $132.6 million operating budget (up 5.9%), citing personnel and professional-services increases; OP&F reported a 6.6% operating increase driven by a 29% rise in healthcare costs; HPRS presented a 3.48% decrease in its internal operating budget.
The Retirement Study Council reviewed 2026 operating budgets submitted by three retirement systems.
OPERS: Director Kara Herr presented OPERS' 2026 operating budget of $132,600,000, a 5.9% increase over 2025's $125,200,000. Herr said personnel costs accounted for roughly $3.3 million of the increase (an average 5% merit assumption) and professional services accounted for about $3.9 million, driven in part by investment-related legal costs, consulting for a new portfolio management system and vendor price increases for cloud and data services. Herr said the capital budget rose slightly from $19.4 million to nearly $20 million and that overall staffing headcount did not change; she noted OPERS had reduced workforce by 132 positions since 2017 largely through technology investments.
OP&F: Director Foley told the council OP&F's operating budget is increasing by 6.6% for 2026, with the largest line-item change a roughly 29% increase in health-care costs attributed to inflationary pressure. He also said banking and custodial expenses fell substantially because of electronic improvements.
HPRS: HPRS Chief Operating Officer Tony Bradshaw presented an administrative budget showing an internal operating decrease of 3.48% compared with 2025. Bradshaw highlighted several line-item shifts, including a change in staff health-insurance provider that lowered costs and incorporation of Northern Trust custodial estimates following a custody transition.
Council members asked questions about professional-services spending, procurement practices and the projected savings from planned cooperation between OPERS and the deferred-compensation board. Director Herr said the organizations expect staff and operational savings over time but are pacing technology investments conservatively.
No formal council vote on budgets was recorded in the meeting transcript; materials were submitted in the standard ORSC format for trustees' review.
