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.