The Ohio Police and Fire Pension Fund (OP&F) was created by the Ohio General Assembly in 1965, replacing 454 separate local police and firemen's relief and pension funds in Ohio. The statewide Fund began operating January 1, 1967. On that date, the local pension funds transferred their assets and liabilities to the OP&F.Assets transferred to OP&F were approximately $75 million. The OP&F actuary computed the liabilities accrued up to 1966 at about $490 million. The employers are paying unfunded obligations totaling over $415 million over a 67-year period, which began in 1969. All municipalities are meeting their obligations to OP&F and employer accrued liability payments are received semi-annually.

OP&F members include more than 28,000 active police officers and firefighters, more than 18,000 retired members and nearly 8,000 beneficiaries and survivors.

The legislative act creating OP&F has been held constitutional, as has the provision establishing and requiring payment of the employer accrued liability. The pension plan is designed to provide reasonable income to plan participants and their beneficiaries when they need it most—when they stop working, become disabled, or in the event of death before or after retirement.

Ten percent of plan participants' earnings are invested in the plan. The participants' employers contribute the appropriate percent of payroll necessary to fund current service costs. This is in addition to the more than $20 million annual contributions for past service liability (accrued prior to 1967) made by employers.

Money deducted from participants' salaries is placed in their own separate accounts much like a savings bank. Each month as the employers' reports of employee contributions arrives, participants' contributions are posted to their respective accounts.

We have come a long way since 1967 in establishing a financially sound pension fund, which now operates on an actuarial reserve basis. Recent legislative enactments have resulted in improved benefits, including a Deferred Retirement Option Plan (DROP).