OP&F is in compliance

System has proposed funding solutions since 2021

The Ohio Police & Fire Pension Fund is once again in compliance with the state’s triennial reporting schedule.

An actuarial study completed in October shows that OP&F meets the state’s funding requirements. OP&F’s independent actuarial consultant, CavMac, reported that the actuarial funding period as of Jan. 1, 2025, is 29.88 years.

Ohio requires that state pension funds maintain a funding period of less than 30 years. Ohio law (ORC 742.14) specifies that an actuarial valuation is performed every three years for OP&F. This year, 2025, is a required reporting year. The next reporting year for OP&F will be in 2028.

“We have been warning that our inequitable funding structure coupled with predictions on the expected return rate for capital markets will result in OP&F falling out of compliance eventually,” said OP&F Executive Director Mary Beth Foley. “That is why, in an effort to repair the long-standing inequities and avoid a funding crisis, we worked with Rep. Cindy Abrams to introduce legislative solutions beginning in 2021 – and continuing today in HB 280 and SB 239. Employer contributions need to be increased. Our funding sustainability to this point is simply due to the sacrifice of our members and the stewardship of our Board of Trustees.”

Pension Trustee Advisors also calls for OP&F to further lower its assumed rate of return. However, OP&F’s gross of fees performance for the one-year period was 14.3 percent; for three years, 13.3 percent, five years, 11.2 percent and for 10 years, 9.7 percent. Each measurement is well above OP&F’s actuarial assumed rate of return of 7.5 percent.

Although Pension Trustee Advisors predicts OP&F’s funding period to increase to 34 years in 2026, the ORSC actuary has incorrectly predicted that OP&F would exceed the 30-year mark for many years. “The Board and its advisors continually monitor this number, and will take action if indicated,” said Foley.

Despite structural underfunding, strong OP&F investment performance has contributed to continued compliance with the 30-year funding requirement. As of Nov. 28, OP&F’s portfolio return was estimated at 16.5 percent, well above the target return of 7.5 percent. In 2024, the OP&F investment portfolio had a gross return of 11.13 percent.

posted 12/10/2025