Contribution Rates

Current contribution rates

Current contribution rates are 19.5 percent of reportable payrolls for employers of police officers and 24 percent for employers of firefighters. This is in addition to full–time police officers and firefighters contributing 10 percent of their gross salary to OP&F.

	Police officers	Firefighters
Member contribution	10% of gross salary	10% of gross salary
Employer contribution	19.5% of gross salary	24% of gross salary

Proposed changes to contribution rates

In early 2006, the Ohio Retirement Study Council (ORSC), an organization created to assist the state legislature, governor and other public officials in the formation of sound public pension policies, reported that OP&F does not currently meet the state’s 30–year funding requirement. While OP&F is fully able to meet its current obligations, the Board had to develop and present recommendations to ORSC that included adjustments to bring OP&F into compliance with Ohio’s statutory funding requirements while meeting its fiduciary responsibilities. Among the proposed changes were adjustments to the employer and member contributions paid to OP&F.

The recommendations presented by OP&F's Board in 2006 would adjust employer contributions for police officers by raising the amount to 24 percent over a five–year period, which OP&F recommended being phased in at one percent per year. OP&F has also recommended that pension contribution withholdings for active police officers and firefighters be raised from the current 10 percent to 12 percent over the same five–year period.

The OP&F Board of Trustees does not have authority to make the employer and member contribution adjustments; they can only recommend the changes. The Ohio General Assembly will have to pass legislation to allow any change in contributions. As decisions are made, information will be announced through direct mail and articles in the Employer Digest.

Last update: 4/11/2007