Board Report, October 2026
Latest funding valuation reported to OP&F Board
OP&F’s independent actuary (Cavanaugh Macdonald) presented the results of its annual funding valuation to the Board of Trustees on Oct. 28. Cavanaugh Macdonald’s analysis shows that the funding period for OP&F stands at 30.87 years as of Jan. 1, 2026, 2.82 years less than anticipated.
This report is prepared voluntarily on an annual basis by OP&F and is not mandated by law. OP&F is required by Ohio Revised Code Section 742.14(A) to have our actuaries prepare an actuarial valuation of pension assets, liabilities and funding requirements every three years. The next triennial report is due Nov. 1, 2028. If on Nov. 1, 2028, OP&F reports that the unfunded actuarial accrued pension liability exceeds 30 years, as determined by the actuarial valuation required by the triennial valuation, Ohio Revised Code Section 742.16 requires the Board of Trustees to, not later than 90 days after receipt of the valuation, prepare and submit to the Ohio Retirement Study Council and the standing committees of the House of Representatives and the Senate with primary responsibility for retirement legislation a report that includes the following information:
(A) The number of years needed to amortize the unfunded actuarial accrued pension liability as determined by the actuarial valuation.
(B) A plan approved by the Board that indicates how the Board will reduce the amortization period of unfunded actuarial accrued pension liability to not more than thirty years.
(C) Whether the Board has made any progress in meeting the thirty-year amortization period.
House Bill 280 and Senate Bill 239, which are currently under consideration by the General Assembly, would make long overdue changes to OP&F’s employer contribution rates, which have not been changed since 1986, and result in OP&F complying with Ohio’s funding requirement.
Recommendations to equalize these rates have been recommended to the Council by its own actuaries since 1994. In addition, both the Reason Foundation and Americans for Prosperity have recommended actuarily determined employer contributions for OP&F.
OP&F’s new pension system launched
OP&F’s new pension administration system went live on Oct. 1, which included a new member portal and login procedures for all OP&F members. Despite the changes, the launch has been successful. In the first four days more than 3,600 calls were received and 9,000 online interactions occurred. While there were certainly some frustrations and complaints, the overall user experience was positive with an 88 percent customer satisfaction rate after 11 days.
The Board of Trustees is considering member feedback it has received, including historical data and DROP history reports for future enhancements.
PORTFOLIO UPDATE
· As of 10/27: $22.2 billion
· End of September: $22.1 billion
· End of August: $22.7 billion
Board of Trustees Committee Notes
(Motions voted on by the Board are listed separately)
DISABILITY: The Committee conducted its scheduled reviews and hearings.
INVESTMENT: Staff presented the monthly portfolio update. Investment consultant, Wilshire, presented the second of three scheduled Asset Liability Study discussions.
FINANCE: Staff presented the 2027 Operating Budget and the 2027 Operating Budget to the Board and addressed questions. OP&F’s independent actuary, CavMac presented the annual actuarial valuation for the pension plan and the retiree health care plan.
Motions:
At its October2026 meeting, the OP&F Board of Trustees approved the following motions:
· The Board approved Townsend’s recommended changes to the Real Estate Investment Policy. Motion passed by unanimous vote (Investment Committee).
· The Board approved staff’s recommended changes to the Private Markets Investment Policy. Motion passed by unanimous vote (Investment Committee).
· The Board approved the Administrative Rules outlined in staff’s memorandum dated Oct. 28, 2026, and authorizes filing of the rules with the proper agencies. Motion passed by unanimous vote (Finance Committee).
· The Board approved the following from the Disability Committee. Motions passed by unanimous vote:
o Approved recommendations for 11 Initial Determinations of Disability Hearings.
o Approved recommendations for four Appeal Hearings.
o Approved the Disability Reporting Waivers list.
o Approved three members to participate in the 2027 OP&F enrollment period based on excusable neglect
Next Board of Trustees Meetings: Dec. 1-2, 2026