All Ohio Pension Systems Comply With State Funding Law For First Time in 15 Years

Graph With Stacks Of Coins

For the first time in 15 years, all of Ohio’s state-level pension funds are in compliance with a state funding law.

The law has to do with the time frame in which a fund can pay down its accrued liabilities.

More details from the Columbus Dispatch:

State government is experiencing something that hasn’t happened in 15 years:

All its pension funds are in compliance with Ohio law requiring adequate financing to repay all obligations in 30 years or less.

That’s a huge contrast from just a few years ago, when the compliance timetable of a couple of the retirement systems was “infinity.” In the past few years, the funds have redirected billions of dollars by trimming benefits and raising employee contributions to achieve the legal standard.

The last to make the threshold was the Ohio Police & Fire Pension fund, which dropped from 33 years to 30. The repayment period for accrued liabilities at the other funds, per the Ohio Retirement Study Council: Public Employees Retirement System, 21 years; School Employees Retirement System, 28 years; State Teachers Retirement System, 28.4 years; and the State Highway Patrol Retirement System, 29 years.

The state’s five pension systems currently sport funding ratios of between 64 percent and 82 percent.

 

Photo by www.SeniorLiving.Org

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