1. OHIO POLICE AND FIRE HEALTH CARE

2. OP&F is one of five public pension systems in Ohio
State Teachers Retirement System (STRS)
Public Employee Retirement System (PERS)
School Employee Retirement System (SERS)
Highway Patrol Retirement System (HPRS)
Ohio Police and Fire Retirement System
(OP&F)

3. OP&F Created in 1967
Prior to 1967 there were 454 separate local Police and Fire pension systems state-wide
When OP&F began operation, $75 million in assets were transferred along with $490 million in liabilities

4. Board of Trustees OP&F has a nine member board of trustees
2 Active Fire Representatives
2 Active Police Representatives
1 Retired Fire Representative
1 Retired Police Representative
3 Statutory Appointments (Governor, Treasurer and joint House and Senate)

5. Investments
As of February 2019 the fund has $15.5 billion in investment assets
Over the course of your retirement, 80% of the benefits collected come from the investment component
20% come from the employee and employer contributions

6. Employee Contribution History

7. Employer Contribution History
* No change in employer contributions since 1986

8. * By current law only employer contributions can be used to fund OP-F healthcare

9. * 23,824 Ohio Residents / 4,805 Reside Out of State
OP-F Pension Stats
27,990 Active Members
28,913 Retirees and Beneficiaries *
Actives: 15,070 Police 12,920 Fire
Retired: 16,523 Police 12,390 Fire
* 23,824 Ohio Residents / 4,805 Reside Out of State

10. PENSION REFORM SB 340 (2012)
Increased member contribution for all active members. Gave OP-F Board authority to adjust employee contribution rate, retirement age and years of service requirements.
Raise normal service retirement age to 52 for newly hired members (7-1-13)
Average Annual Salary changed to the average of the 5 highest years of contributions, not highest 3 years for members with less than 15 years of service (7-1-13)
Members must be 55 y/o before receiving COLA
Members with less than 15 years of service as of (7-1-13) will have COLA reduced from 3% to CPI.
Increase the minimum period for DROP participation to 5 years
Changes to reduce amount of member contributions that go into DROP account.

11. Health Care
Since 1974 OP-F has provided some form of Health Care or Health Care Subsidy
OP-F Funds Retiree Health Care through the Health Care Stabilization Fund (HCSF)
OP-F made the decision to move from a self insured group plan to providing a stipend for members to purchase insurance on an individual basis
This change has increased the solvency of the HCSF from 6 to 15 years
The HCSF has approximately $900 million in assets

12. OP-F Health Care Stipends

13. OP-F Enrollments
Before the recent healthcare changes, approximately 60% of non-Medicare eligible members and 90% of Medicare eligible members elected for coverage.
After the changes, approximately 70% of non-Medicare eligible members and 95% of Medicare eligible members have elected for coverage.

17. Healthcare Solvency
Prior to the changes to healthcare, the HCSF was projected to be insolvent in approximately 6 years.
This means there would be no money for stipends, subsidies or any type of healthcare.
After the changes, the projection from the actuary is that the HCSF will be solvent for 15 years.
The OP-F stated goal is to keep providing some sort of healthcare benefit for as long as possible.

18. OP-F Retiree Complaints
AON has been a total disaster to work with for the membership.
Limited or no healthcare options in certain areas.
Paying more for less. (Pre-Medicare)
OP-F stipend can only be used through Aon.
Stipends not showing up in accounts on time.

19. HEALTHCARE SOLUTIONS?