OPERS funded level changes

System has 82 cents on hand for every dollar owed in future liabilities

By Michael Pramik, Ohio Public Employees Retirement System

March 5, 2026 – OPERS’ funded level at the end of 2025 is expected to decline about one percentage point from the previous year, according to preliminary investment returns from last year.

Return results as of Dec. 31 show that the OPERS Defined Benefit Fund earned a 14.4% return in 2025. Despite the favorable investment performance, the system’s estimated funded ratio is expected to decline to 82% from 83%. That means OPERS has 82 cents for every dollar it owes in future liabilities.

The forecasted time expected to pay off the system’s unfunded actuarial accrued liabilities, defined as the amortization period, is estimated to increase from 15 years to 17 years.

OPERS smooths its pension investment returns over a four-year period for funding purposes, which explains why the funded level is down slightly after a year in which we outgained our assumed investment rate of return of 6.9%.

OPERS expects an investment gain of about $7.3 billion last year. Because of our four-year smoothing structure, we would recognize about $1.8 billion of that gain in 2025. However, heading into last year, OPERS had an unrecognized net loss carryforward of $2.4 billion that gets fully recognized this year, and thus the funded level is expected to decline by 1%.

Going forward, OPERS should have a net unrecognized asset gain carryforward of about $7 billion, to be recognized over the next three years.

For the OPERS Health Care Plan, the primary funding metric is the estimated remaining years of solvency. With a preliminary 12-month investment return of 16.4% as of Dec. 31, the plan’s solvency period is expected to improve to 32 years, from 27 at the end of 2024.

This forecast is based on consideration of just one factor in the final actuarial analysis. While investment returns make up a key component of the final analysis, there will be other factors that are part of the final actuarial valuation. OPERS’ external actuary will present the final asset and liability results to the OPERS Board of Trustees in May for the pension plan and in September for the health care plan.

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.