Board Report, December 2024

Sub. HB 296 passes Ohio House; Senate now considering

On Wednesday, Dec. 4, the Ohio House of Representatives passed Ohio Substituted House Bill 296 by a vote of 66-25. The proposal now moves to the Ohio Senate. In order for Governor Mike DeWine to sign it into law, the Senate would need to approve the bill in this session which ends at the end of the year.

The proposal would increase the police employer contribution rate to 24 percent from the current 19.5 percent. The fire employer rate is already set at 24 percent. The bill calls for a six-year phase in for the increases. Also included is a 0.25 percent increase in employee contributions in the final year of the phase in.

Both OP&F’s and the Ohio Retirement Study Council’s actuaries have noted the unequal police and fire employer contributions rates. Yet, the rates have remained unchanged since 1986. Despite not offering any real solutions, lobbying groups representing Ohio cities have been vocal opponents of the current bill and previous efforts to have OP&F employers pay their fair share.

When established in 1967, the funding was not equitable – OP&F started with $490 million of the liabilities from the cities and only 15 percent of the funds required. This is the unfunded mandate – the promise made to public safety officers was never properly funded.

OP&F Board remembers Senator Schuring during meeting

The OP&F Board of Trustees had a moment of silence during its meeting for Senator Kirk Schuring, who died Nov. 22. Senator Schuring was an advocate of public pensions during his three decades as a legislator at the Statehouse.

PORTFOLIO UPDATE

Board of Trustees Committee Notes

(Motions voted on by the Board are listed separately)

DISABILITY: The Committee conducted its scheduled reviews and hearings.

ADMINISTRATION/AUDIT: The Committee reviewed the annual OP&F Communications Plan and received the Internal Audit Status Report during its meeting. Staff also provided the Committee with the Ohio Retirement Study Council Annual Audit Report.

PERSONNEL: The Committee received an update to the Emergency Replacement Plan and an update on staffing data. The Committee was also advised of the annual Board Self-Evaluation results.

FINANCE: The 2025 Operating and Capital Budgets were reviewed by the Committee.

INVESTMENT: Staff presented its monthly review of the portfolio value and year-to-date performance. Wilshire presented the Investment Performance Report for periods ended Sept. 30, 2024, and the Private Equity and Private Credit Program Analysis for periods ended June 30, 2024. Staff also presented the Private Markets Program Review since inception to June 30, 2024, and the Private Asset Class Manager Fee Reports for the period ending Dec. 31, 2023.

HEALTH CARE: Representatives from Alight, OP&F’s retiree health care partner, presented the 2025 Enrollment Period Update and staff presented the Health Care Stabilization Fund 3rd Quarter update.

Motions:

At its December 2024 meeting, the OP&F Board of Trustees approved the following motions:

• Approved recommendations for six Initial Determinations of Disability and two Reconsideration hearings.
• Approved the recommendations for six Appeal Hearings.
• Approved recommendations for three Death Benefit Fund applications.
• Approved the Disability Reporting Waivers list.

NEXT BOARD OF TRUSTEES MEETINGS: Jan. 28-29, 2025