Giving thanks for pensions

Reports stress importance of defined benefit funds for retirement security

By Michael Pramik, Ohio Public Employees Retirement System

Nov. 26, 2024 – As Thanksgiving Day draws near, we’d like to take time to appreciate the benefits that a monthly pension can bring to retirees.

In its report titled, “Retirement Insecurity 2024,” the National Institute on Retirement Security said that while most Americans are worried about their readiness to retire, those with defined benefit pensions are much better off. NIRS cited the decision late last year by IBM to reopen its defined benefit plan as evidence that the monthly pension is a highly prized benefit.

The report adds:

• More than three-fourths of Americans have a favorable view of pensions, while 77% agree that the disappearance of pensions makes it harder to achieve the American Dream.
• A large majority of Americans – 83% — say all workers should have a pension to be “independent and self-reliant in retirement.”
• Americans want leaders in Congress to devote more of their time to retirement security, saying they don’t believe our legislators “understand how hard it is to save for retirement.”

Further, a recent study by the Equable Institute shows that preliminary 2024 investment return data, which includes estimates of investment benchmarks, suggest an average investment increase of 7.42%, which is above OPERS’ 6.9% assumed rate of return.

The Equable report also showed that the average funded ratio – the ratio of assets to liabilities – for statewide pension plans in 2023 was 80.4%. OPERS’ funded ratio at the end of 2023 was 83.8%, more good news to be thankful for.

As a reminder to our members and retirees, OPERS will close at noon on Wednesday and remain closed on Thanksgiving Day and the day after Thanksgiving.

We’ll post our hours for Christmas and New Year’s Day as those holidays approach. In the meantime, OPERS wishes everyone a happy Thanksgiving.

Michael Pramik

Michael Pramik is communication strategist for the Ohio Public Employees Retirement System and editor of the PERSpective blog. As an experienced business journalist, he clarifies complex pension policies and helps members make smart choices to secure their retirement.