ORSC defers action on HB 512 analysis

The Ohio Retirement Study Council (ORSC) today deferred action on the staff recommendation for House Bill 512 due to “too many unanswered questions.” Suggestions from ORSC staff include that wage contributions by police officers and firefighters to fund their retirements be increased, that they be required to work longer or be older in order to retire.

OP&F applauds the council for seeking additional information on this important legislation. The purpose of House Bill 512 is to ask the General Assembly to place both OP&F fire and police employer contribution rates in parity with the Highway Patrol Retirement System rates, the only comparable law enforcement public pension system in Ohio. By so doing, the General Assembly would be addressing funding shortfalls predicted by financial and actuarial experts and also avoid the burden being carried by the state’s police officers and firefighters. Since the 2012 pension reforms, OP&F members have sacrificed $3.2 billion in benefits. Employers have not seen a change in contribution rates since 1986.

ORSC Chair Phil Plummer explained his motion to defer the decision by stating “We do not want to cut your benefits.” Chair Plummer, a former Sheriff and 30-year law enforcement veteran, also acknowledged that “we all got into these professions knowing we took less pay, we worked hard, but at the end of the day we’d have good retirements and benefits.”

During the presentation of the staff recommendation, several statements were made that require correction.

• ORSC staff gave the impression that OP&F is out of compliance with the 30-year funding requirement. Since 2015, OP&F has been in compliance with the 30-year requirement.
• Ohio law requires OP&F to deliver a plan to the ORSC if it exceeds the 30-year funding requirement. Because it is anticipated that an actuarial report due November 1 of this year will find that OP&F will exceed the 30 year requirement, OP&F sounded the alarm and Sponsors Brian Baldridge and Cindy Abrams sponsored this legislation to avoid additional cuts for public safety. We look forward to continuing to work with our employer partners on solutions to address their concerns.