The annual study of OP&F’s pension funding status showed slight improvements from a year ago, according to a report from independent actuary, Cavanaugh Macdonald Consulting. The valuation report as of Jan. 1, 2020 shows a pension funding period of 28 years, a one year improvement from the 2019 study.
The pension funding period indicates how long it will take to pay off all unfunded liabilities if all assumptions are met. The state of Ohio mandates that public pension systems have a funding period of 30 years or less. OP&F has met this standard each of the last six years. The funding ratio is now 69.7 percent, a slight improvement from the previous year (69.4 percent). The funding ratio is the pension plan's assets as a percentage of liabilities.
As a part of the actuarial report, Cavanaugh Macdonald also reported that the Deferred Retirement Option Plan is working as intended and remains cost neutral for OP&F.