Board Report, October 2024

Annual actuarial valuation shows OP&F still complies with funding requirements

OP&F’s independent actuary, Cavanaugh MacDonald, presented its annual report on the system’s funding status at the Board of Trustee meeting on Oct. 30. The actuarial valuation showed that OP&F’s funding period is now 29.77 years, which is still in compliance with Ohio’s requirement of 30 years or less. The latest funding period is a slight increase from Jan. 1, 2023, when it was 26.71 years. The funding period shows the time it will take to fully pay all pension obligations if assumptions in place are met.

The funding ratio for OP&F decreased to 68.1 percent as of Jan 1, 2024, from 70.0 percent the previous year. The funded ratio is designed to show the amount of actuarial assets compared to the actuarial accrued liability.

The passage of legislation currently under consideration in the Ohio House (House Bill 296) and Senate (Senate Bill 194) would considerably improve OP&F’s long-term funding status by changing the funding formula from OP&F employers, which has not been adjusted for nearly 40 years.

PORTFOLIO UPDATE

Board of Trustees Committee Notes

(Motions voted on by the Board are listed separately)

DISABILITY: The Committee conducted its scheduled reviews and hearings.

FINANCE: OP&F’s independent actuary, Cavanaugh MacDonald, presented the actuarial valuation as of Jan. 1, 2024. The presentation also included a valuation of OP&F’s Health Care Stabilization Fund as of Jan. 1, 2024, and the annual Deferred Retirement Option Plan cost-neutrality study.

INVESTMENT: Staff presented its monthly review of the portfolio value and year-to-date performance.

Motions:

At its October 2024 meeting, the OP&F Board of Trustees approved the following motions:

• Approved recommendations for 12 Initial Determinations of Disability and two Reconsideration hearings.
• Approved the recommendations for five Appeal Hearings.
• Approved recommendations for four Death Benefit Fund applications.
• Approved the Disability Reporting Waivers list.

NEXT BOARD OF TRUSTEES MEETINGS: Dec. 3-4, 2024