House Committee Hears Legislation to Modernize the Ohio Police and Fire Pension Fund

COLUMBUS - Last Wednesday, March 23, the House Insurance Committee began hearings on House Bill 512. The legislation aims to increase contributions from employers of full-time firefighters and municipal police officers to the Ohio Police and Fire Pension Fund. 

“H.B. 512 is responsible legislation that will help our police and fire retirees,” said the bill sponsor, State Representative Cindy Abrams (R-Harrison). “This bill recognizes that police officers and firefighters have already been asked to pay more and accept benefits cuts.”

This modernization effort comes one month following OP&F’s vote to reduc ethe fund’s assumed rate of return from 8% to 7.5%, which OP&F’s actuary highlights will push the fund’s funding times to 43-years, outside the state mandated 30-year solvency window.

In 2012, OP&F underwent massive pension reform, which included a raise of member contributions from 10% to 12.25% but no change to employer contributions, which currently remains equal to 24% of a firefighter’s salary and 19.5% of a police officer’s salary.  Overall, the reform resulted in $3.2 billion decrease in unfunded liabilities. 

H.B. 512 would increase the contribution rates for full-time employers over a five-year period based on employee salaries earned in pay periods beginning in 2023 through 2027. 

“If the Legislature fails to take action, the amount of money needed to fill the solvency gap will only grow,” noted Abrams. “Day by day, hour by hour - the fund will become more unstable, jeopardizing the benefits our current first responders are working toward.”

The Ohio Police and Fire Pension Fund was established in 1967 when over 450 local pension funds united into a statewide system. The fund serves over 27,000 active duty first responders and more than 30,000 retirees and their beneficiaries.

H.B. 512 now awaits a second hearing.