Pension-News-2018

Good morning and, thank you for this opportunity to address the Board concerning a Board decision you will make next month to establish active member contributions to the system and cost of living adjustment (COLA) benefits to retirees in 2019.

It is somewhat safe to assume, no person in this room today was alive when the first academy class graduated from the Camp Perry School in November of 1933- with the exception of J.P. Allen. And, it is also somewhat safe to say none of the 60 graduates were thinking very much about retirement. At that time, the nation was coming out of the depression and these men were undoubtedly very happy to have a full time job with the State. They were probably most concerned about keeping warm!

Click open the PDF to see Colonel Rice's presentation to the Board.

Chairman and Members of the Board.

Good Morning and thank you for this opportunity to address the Board. I want to keep my comments brief because I have a simple message to convey. I and many others have taken part in the dialog. There needs to be a discourse and there needs to be an awakening.

My thoughts and concerns involve those who retired in the ‘80’s and ‘90’s and earlier. They are the ones at stake. Our retirees built this organization and they are our heritage. They’ve provided us with the basis for everything we know. We will not jettison them. Any decision regarding COLA will be crucial.

Click open the PDF to see Major Booker's presentation to the Board.

On July 31, 2018 a special session of the Ohio State Highway Patrol Retirement System was conducted at the Patrol Academy to address concerns regarding the OSHPRS Health Care Fund. The meeting was open to all active and retired members of the OSHPRS. A health care management presentation was made by AON, a private sector health care management vendor. Director Mark Atkeson provided an overview of historical information and data, including major legislative and benefit changes since 1974 when health care benefits where first provided to the membership. This presentation was followed by a discussion period, providing OSHPRS active and retired members with an opportunity to express concerns about potential changes to active member contributions and reductions in COLA percentages for retirees.

Retired Colonel Thomas Rice and Retired Major Robert Booker were the first to address the Board, followed by several others in attendance. If you would like to provide a comment or concern, email it to [email protected] Please keep comments short and suitable for a public forum.

Member contributions and COLA adjustments will be finalized at the next Board meeting during the annual board retreat in Cleveland, Ohio on August 16-17, 2018.

Click open this Power Point Presentation to review the information provided by Director Atkeson.

On August 16, 2018, as part of the Annual OSHPRS Retreat, Senior Actuarial Consultant Mita Drazilov of Gabriel, Roeder, Smith and Company (GRS) presented an overview of the 2017 Actuarial Report for the OSHPRS. The final version of this report will be presented to the Ohio Retirement Study Council later this month. This report serves as the foundation for determining pension system solvency and the legislative mandate of maintaining a 30 year (or less) amortization period to pay off its unfunded liabilities.

Considering “Capital Market Expectations” for the coming year, Drazilov advised the 2017 report will allow for a 7.75% projected rate of return on investments, which will allow the OSHPRS to stay within the 30-year amortization period set forth by statute, while continuing the current 12.5% active member contribution rate and the 1.25% retiree COLA for 2019. Drazilov further advised that the 2018 report, based on current capital market expectations, will require that the investment rate of return be reduced. It is unknown at this time what reduction will be required, but any reduction negatively affects the funding status of the system. This may require a change to employee contribution, COLA, or both to stay compliant with the 30-year amortization period. We will post more information as it becomes available.

February 21, 2019 - Pension News - Summaries of the most recent OSHPRS Board meetings are now being provided to the membership. To access the summary, link to the Retirement System's web page , log into your account and click on "Board Meeting Updates". During the February 21st meeting, the strategic plan was updated and GRS Retirement Consulting provided an overview of their most recent actuarial report and its potential impact on future COLA and active member contribution rates.