Policy group says Ohio’s pensions well-managed

The management of Ohio’s public pension plans is a bright spot in the state’s overall budgeting process, says a national fiscal policy organization.

The Center on Budget and Policy Priorities lauded Ohio for having regular, accessible reviews of the methods used to determine future pension funding by independent authorities. In a report titled “Budgeting for the Future: Fiscal Planning Tools Can Show the Way,” the center noted the fact that regular actuarial audits and experience studies are required by law in Ohio.

The Ohio Public Employees Retirement System employs a robust set of actuarial services to help assure we can maintain our benefit structure. Click here to read our blog on this set of reports and reviews.

The center also commended Ohio for setting guidelines for debt service and having an independent investment council. It cited as an area of improvement having employers make at least 95 percent of the Annual Required Contribution (ARC) during the period 2005-09, but OPERS’ employers made 100 percent of the ARC during that period.

Ohio’s five state public pension systems, as a whole, provide adequate pension contributions and oversight of investments. The center scrutinized how the states prepare for annual spending and detailed tools that can help budget planners create their fiscal path.

The center advocates for a rigorous approach to long-term budget planning and provides a report card for each state. Ohio’s score of 5.5 out of 10 earned it a ranking of 24th.

For the complete report, click here.

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4 Responses to Policy group says Ohio’s pensions well-managed

  1. JA says:

    On a Cincinnati TV station (Ch 12) it was mentioned by a council person that when the City’s pension system reaches a funding level of 90% — it will approach OPERS and asked to be “absorbed?” by or “merge with?” OPERS.

    What sayeth OPERS?

    • Michael Pramik says:

      JA,

      We have had one informational discussion with representatives of CRS, but nothing beyond that point. There is no merger in the works.

      –Ohio PERS

  2. JA says:

    At what percent is OPERS funded? Is it better than 90%?

    And your article (Policy group says Ohio’s pensions well-managed) said we are ranked 24th — is that 24th of 50 states? I would have thought we were ranked better. The color coded map of the US shows a light orange indicating we “need improvement.”

    • Michael Pramik says:

      JA,

      OPERS is funded at 81 percent.

      As for the ranking, that would be a question for the Center on Budget and Policy Priorities. Remember that they are considering all Ohio pension systems, not only OPERS.

      –Ohio PERS

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