Representatives Abrams and Hall Introduce updated Public Safety Pension Modernization Act

Ohio State Representatives Cindy Abrams and Thomas Hall introduced the updated Public Safety Pension Modernization Act on Oct. 5, 2023.

This bill refines a previous one from the last session, making moderate and reasonable changes to modernize and ensure the ongoing solvency of the Ohio Police and Fire Pension Fund (OP&F).

The primary component of the bill, which also marks a departure from two years ago, concerns the employer share of the pension payments for first responders. While this bill maintains the employer share for firefighter pensions at 24%, it proposes to equalize the employer share for police to 24%, ensuring parity for all first responders.

Representative Abrams emphasized that this revised legislation serves a crucial purpose, acknowledging the feedback and discussions over the past two years.

“Over the past two years, we've actively listened. As a result, this bill proposes no increase for firefighters and only a modest hike for police to create equality between police and fire,” Abrams said. “This is a necessary move to guarantee the pension fund's long-term stability for the future generation of first responders.”

The earlier proposal recommended raising employer contributions for both police and firefighters to 26.5%, translating to an increase of 7% for police and 2.5% for firefighters.

This current bill acknowledges the substantial benefit reductions already borne by first responders and the rise in their own contributions to the pension fund.

Representative Thomas Hall says that the legislation is important to ensure the long-term stability of the pension fund, but also to see through the promise made to first responders.

“We make a commitment to take care of Ohio police and firefighters for life, and this bill is a significant step towards honoring that commitment,” Hall said. “It’s good government policy, it will help extend the stability of the pension fund, and it’s just the right thing to do for our police and firefighters.”

It's pivotal to point out that employer contributions had remained static since 1986 prior to this legislation. Added to this are new challenges like a spike in early retirements and recruiting difficulties for first responders, which hamper payroll growth, setting the stage for impending challenges.

Mary Beth Foley, Executive Director of OP&F, shared that while this bill addresses pressing concerns, it could be just the beginning in ensuring the fund's long-term stability.

“A few years ago, we had forecasted a turbulent phase for capital markets, and it has indeed transpired,” Foley said. “This bill serves as a stabilizing measure and a commendable initial step. We'll maintain an ongoing dialogue with lawmakers to stay proactive in market irregularities and keep our commitment to first responders at the crux of policy discussions.”

This legislation has garnered the support of the OP&F board, comprising both active and retired police and firefighters. In addition, the Fraternal Order of Police of Ohio and the Ohio Association of Professional Firefighters have endorsed this bill.

Posted 10/05/2023