OP&F’s actuarial consultant presented the annual actuarial valuation at the Oct. 27 Board of Trustees meeting and results showed continued improvement to the system’s long-term funding. The funding period is now down to 25 years, an improvement from 28 years in last year’s report. The funding period estimates the amount of time it will take to pay off all unfunded liabilities. Ohio has a 30 year funding rule that retirement systems must remain below. The funding ratio increased to 71.2 percent from 69.7 percent (representing the system’s assets to its liabilities). All data in the valuation presented is from Jan. 1, 2021. Despite the improvements to long-term funding, lower capital market returns have been predicted, which OP&F must consider when looking to adjust actuarial assumptions.
Additionally, it was reported at the Board meeting that the OP&F investment portfolio reached an all-time high value at $19.03 billion as of Oct. 26, 2021. Estimated investment returns so far in 2021 are approximately 13.3 percent, above the 8.0 target return for the portfolio.