Substitute HB 296 is essential; Ohio’s cities and municipalities need to pay their debts

Ohio Substituted House Bill 296 passed by the Pension Committee by a vote of 12-3 on Nov. 5, and will advance to the full House for consideration. 

 We need our members help! Please contact your mayors, state representatives and state senators in Columbus to urge them to support this legislation. This is the closest we have come to passing this legislation, but time is running short. Act now and contact your elected officials. 

 To find your representative or senator: 

Ohio House of Representatives 

Ohio Senate 

 “The cities’ misinformation and excuses need to stop,” said Mary Beth Foley, executive director of the Ohio Police & Fire Pension Fund (OP&F). “Ohioans have repeatedly voiced their strong support of the police and firefighters who protect them. It’s time for mayors and municipal leaders to do the same and support this legislation.” 

 The bill would increase what Ohio municipalities pay into OP&F by 0.75 percent for six years and provide essential long-term funding relief to the retirement system for first responders. The bill also increases what active police and fire members pay into the system by 0.25 percent. 

 So far our members have made all the sacrifices, including in this bill and $3.2 billion in previous cuts. 

 Both OP&F’s and Ohio Retirement Study Council’s actuaries have noted the unequal police and fire employer contributions rates. Yet, the rates have remained unchanged since 1986. Despite not offering any real solutions, lobbying groups representing Ohio cities have been vocal opponents of the current bill and previous efforts to have OP&F employers pay their fair share. 

 “Their claims that they can’t afford 0.75% increase over six years for police strains credibility. Some of our largest cities have had million-dollar surpluses in recent years,” Foley said. 

 It has been nearly 40 years since employers saw an increase in this rate. Police and fire members had their contributions increased in 2013, 2014 and 2015. 

 When established in 1967, the funding was not equitable – OP&F started with $490 million of the liabilities from the cities and only 15 percent of the funds required. This is the unfunded mandate – the promise made to public safety officers was never properly funded.

 • It has been 3½ years since the pension funding legislation was initially introduced. Delay by cities during that time has increased OP&F’s unfunded liabilities by $24 million. 

 • OP&F members accepted sacrifices in 2013-15 during previous pension reform legislation – including reduced COLAs, a higher retirement age, and increased contribution rates. 

 • The only other comparable Ohio pension fund (public safety) is the Ohio Highway Patrol, which has a 26.5 percent employer contribution rate. 

 Cities need to stop making excuses and pay what they owe to public safety workers. The problem is not with how our retirement system is managed or how our investment program operates. The issue is the funding formula in place. It has been unfair for decades and it must be fixed.

posted 11/21/2024