Independent study shows OP&F again meets state funding requirement

The most recent actuarial study of the Ohio Police & Fire Pension Fund shows that it meets the state’s funding requirements. OP&F’s independent actuarial consultant, CavMac, presented its findings at the Board of Trustees meeting on Oct. 22.

The funding period as of Jan. 1, 2025, is 29.88 years. Ohio requires that the state pension funds maintain a funding period of less than 30 years.

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

Ohio law specifies that an actuarial valuation be performed every three years for OP&F. This year, 2025, is a required reporting year. If the triennial valuation determines that the funding period exceeds 30 years, a plan must be submitted indicating how OP&F plans to meet the requirement.

CavMac performs valuations for OP&F each year in order to monitor the funding of the retirement system. The 2025 funding period is slightly higher than the results of the Jan. 1, 2024, valuation, which showed a funding period of 29.77 years.

Inadequate employer contributions have kept OP&F from making progress in paying down unfunded liabilities. When OP&F was established in 1967, the funding was not equitable – the system started with $490 million of the liabilities from the cities and only 15 percent of the funds required to cover those liabilities. The promise made to public safety officers was never properly funded.

• It has been four years since pension funding legislation was initially introduced. Delays by cities during that time have increased OP&F’s unfunded liabilities by millions of dollars.
• The last increase in employer contributions was 40 years ago, in 1986.
• OP&F members accepted sacrifices in 2013-15 during previous pension reform legislation – including reduced COLAs, freezing COLAs until age 55, a higher retirement age, and increased contribution rates.

Posted 10/22/2025