OPERS releases financial reports

Funding remained steady as investments rebounded in 2023

By Michael Pramik, Ohio Public Employees Retirement System

July 25, 2024 – OPERS has released its latest annual financial reports, which provide a detailed look at our financial, investment, actuarial and demographic details, providing transparency in the management of your pension system.

The latest Annual Comprehensive Financial Report, and the abbreviated Popular Annual Financial Report, are available on our website for members and stakeholders to review. The reports present the previous calendar year’s accomplishments.

Here’s some of the 2023 information you’ll discover about OPERS in these latest reports:

• OPERS maintained a total net position of $114.8 billion at the end of 2023, up from $106.8 billion from a year earlier, reflecting last year’s rebound in global investment markets.
• Total fund returns for 2023 reflected a gain of 11.72%, compared to a loss of 12.49% the previous year.
• The OPERS defined benefit portfolio returned 11.26%, above the benchmark return of 10.46% and the anticipated actuarial funding plan rate of 6.90%. The health care portfolio returned 13.97%, exceeding the benchmark of 13.65% and the funding plan rate of 6.00%. The defined contribution portfolio returned 18.08%, compared to the benchmark return of 18.16%.
• The Dec. 31, 2023, actuarial valuation reflected that OPERS remained 84 percent funded, and the amortization period improved from 16 years to 15 years. A lower amortization period is better, and Ohio requires OPERS to be within a 30-year amortization window.
• The Health Care Plan solvency years decreased from 29 years at the end of 2021 to 21 years at the end of 2022. That’s the date of the latest health care fund valuation and thus doesn’t reflect the strong investment returns in 2023.
• Membership topped 1.28 million with growth in all three categories. At the end of 2023, membership included 220,876 retirees, 308,456 active members and 756,757 inactive members.
• OPERS made pension benefit payments of more than $7.2 billion, up from $7.0 billion in 2022.
• Health care costs, net of related receipts, declined to $545 million, from $591 million.
• Employers contributed nearly $2.5 billion to the system, up $142 million over their 2022 contributions. Member contributions rose more than $100 million to $1.8 billion.
• Last year OPERS had 83 members who were more than 100 years old, with the oldest being 108.
• OPERS is good for Ohio. For every dollar we received from public employers in 2023, $3.14 was returned to the Ohio economy through pension and health care payments made to retirees. More than $114 billion in system assets were managed through OPERS’ in-state custodian, and $2.6 billion of the OPERS portfolio was invested with Ohio-based companies.
• Here are a few averages for new retirees in 2023:
  • Age at retirement: 61.6
  • Years of service at retirement: 24.5
  • Final average salary: $66,244
  • Pension at retirement: $33,749
  • Age on valuation date: 62.1
  • Pension on valuation date: $33,820

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.