|
Welcome
The Fraternal Order of Police of Ohio, Inc., in response to the request of
its members, has formed this page for retirement issues. This page is
designed to assist the retired FOP member and the FOP member that will
eventually retire. Check back frequently, as we will continue to
develop this new area.
| The FOP of
Ohio, Inc. have endorsed member(s) setting on the Ohio Police and Fire
Pension Board. |
|
Billy Gallagher, Retired Member
Seat |
Kathy Harrell, Active Member Seat |
| Ed Montgomery,
Active Member Seat |
|
|
Issues of Interest
|
|
UPDATE - Ohio's Public Pension Systems
December 31, 2009
Dear Members,
The intent of this letter is to bring the FOP membership up to speed
with regards to Ohio’s public pension systems. At the request of the
Ohio Retirement Study Council (ORSC), each of the five public pension
systems in Ohio were mandated to draw up a plan to ensure the pension
systems get to or retain their funding within the 30-year statutory
requirement. These plans, developed by each of the individual
systems, were presented at the September ORSC meeting to illustrate
their current funding status and possible recommendations for
legislative action within the requirements of Ohio law.
Keep in mind that the ORSC requested these plans from the pension
systems and the FOP has not endorsed nor taken a position on any of
these current recommendations. In fact the FOP has already met with
members of the ORSC to highlight some of the positions we have taken in
the past and encourage open communication should any of these
recommendations be drafted into legislation. The FOP has also conducted
meetings with local lodge leaders from throughout Ohio to gather input
on the membership’s views and ideas. For more specific information on
the proposed changes see
this document or look under the legislative section for additional
news and updates.
Within the last couple of months, the FOP has had several meetings with
Chairman Todd Book of the ORSC and members of the Ohio House
leadership. Currently, there has been no draft legislation that has
been reviewable by our office. However, we anticipate that legislation
will be forthcoming early in the year 2010 and we are working very
closely with all the interested parties on these issues to ensure the
voice of the FOP is heard.
I also want to take this opportunity to make you aware of several
editorials that will be propagated by Ohio’s newspapers in an attempt to
“legislate by editorial”. The newspapers feel it is their duty to speak
for the people and question the “pension envy” issue when the public
pension systems are failing to meet their own 30 year funding statutory
mandate in Ohio law. Certainly this will put pressure on the
legislature to act on pension legislation but after speaking with our
legislative leaders we are convinced that a knee-jerk reaction will not
be taken. We also will have much more debate and conversations with the
legislature once a draft is circulated with the proposed changes.
I assure you that the FOP is taking, and has taken, steps to maintain
the interests of our members, both active and retired, in supporting and
maintaining our pensions and healthcare. Furthermore, as more
information is developed, we will do our best to get it disseminated to
the membership.
Fraternally,
Mark Drum, Legislative Chairman
|
|
Ohio's Public Pension Systems
Dear Members,
The intent of this letter is to bring the FOP membership up to speed
with regards to Ohio’s public pension systems. At the request of the
Ohio Retirement Study Council (ORSC), each of the five public pension
systems in Ohio were to draw up a plan to ensure the pension systems get
to or retain it’s funding within the 30-year statutory requirement.
These plans, presented by each system, were presented today at the
monthly ORSC meeting illustrating their current funding status and
possible recommendations for legislative action within the requirements
of Ohio law.
Keep in mind that the ORSC requested these plans from the pension
systems and the FOP has not taken a position on any of these current
recommendations. In fact the FOP has already met with some members of
the ORSC and has meetings scheduled with every member of ORSC to
highlight some of the positions we have taken in the past and encourage
open communication should any of these recommendations be drafted into
legislation.
Below are links to
each of the five systems recommended plans for long-term sustainability
and to ensure their system is compliant with the 30-year statutory
requirement.
I assure you that the FOP is taking and has taken steps to maintain the
interests of our members, both active and retired, in supporting and
maintaining our pensions and healthcare. We have already held one focus
group meeting with FOP leaders from around the state and plan to
continue with this focus group the first week of October (exact time and
date will be determined shortly). As these issues progress we will keep
you informed and up to date on any changes or legislative proposals that
may be drafted. Ultimately, these changes will need to be voted on by
your locally elected representatives in the Ohio House and Senate.
Fraternally,
Mark Drum, Legislative Chairman
|
Funding
recommendations approved, will be presented to O.R.S. on
Sept. 9
During its August meeting the OP&F Board of Trustees
approved a plan to dramatically improve the system’s
long-term funding status. The plan will be presented to
the Ohio Retirement Study Council (ORSC) on Sept. 9 and
includes a wide range of contribution and benefit
recommendations.
Most of the recommendations require legislative
action before they can be implemented. As part of the
Board’s approval, a stipulation was included stating
that OP&F would implement the discretionary items in the
plan only after legislation is passed enacting the
statutory recommendations.
The Board unanimously supports the recommendations
and will present the plan to the ORSC with the
anticipation that legislation will be introduced and
passed to implement the changes.
Ohio requires each public retirement system to be
able to pay off all its obligations within a 30-year
period. Each system will be presenting funding
recommendations to the ORSC on how to improve its
funding status or comply with the requirement.
Investment losses from 2008 have limited or prevented
the ability of systems to meet this requirement.
In December 2008, the ORSC asked OP&F to begin a
comprehensive review of all elements of the retirement
system and present a proposal to reach the state’s
mandated 30-year funding requirement.
It is important to realize that despite the actions by
the Board, OP&F remains financially sound and is fully
able to pay all of its obligations for many years to
come. These recommendations are being made to correct
OP&F’s long-term funding expectations.
The following recommendations are included in
the plan to be presented to the ORSC on Sept. 9:
Items requiring legislation by the Ohio General
Assembly:
- Increase the active member contribution rate
from 10% to 12%
- Increase the police employer contribution rate
from 19.5% to 24% (so police and fire employer
rates are equal)
- Increase the normal service retirement age to
age 52 for new hires
- Delay the Cost-of-Living Adjustment (COLA) until
age 55 (with the exception of beneficiaries)
- Increase the police and fire employer
contribution rate an additional 1%(to 25%).
- Change the minimum period for participating in
the Deferred Retirement Option Plan (DROP) to 5
years (from the current 3 years) for all new
participants
Items to be implemented following legislation
enacting all items above
- Redefine “average annual salary” to mean the
highest average annual salary for a member during
any 5 years of contributions (from the current 3
years)
- Reduce the DROP interest credit rate from 5% to
3%.
- Reallocate 1.5% of the 6.75% of the employer
contribution rate currently allocated to fund OP&F’s
retiree health care plan.
- For new retirees, the subsidy for the health
care plan premiums will be tied to years of service
|
|
The Ohio
Department of Insurance is offering help for retirees looking for
insurance assistance. They have established a program to assist
retirees who are dealing with a reduction in coverage, or have lost
their healthcare coverage. They provide unbiased assistance in
sorting through all coverage options to find what fits the individual's
need. The Ohio Senior Health Insurance Information Program can be
reached at 1-800-686-1578.
|
| |
| |
| |
| |
|
