The Daily Standard
Story Archive
CELINA - Local leaders have mixed feelings on pending state legislation that aims to increase the contributions municipalities make to the Ohio Police and Fire Pension Fund (OP&F).
Ohio House Bill 296 would increase the employer contribution to the OP&F from 19.5% to 24% for police over six years, increasing at .75% each year. Employers currently contribute 19.5% for police and 24% for fire to the fund. The legislation would also raise employee contributions from 12.25% to 12.5% in 2030.
The employer contribution is an amount equal to a percentage of each employee's salary.
The bill was first introduced by Reps. Cindy Abrams, R-Harrison, and Thomas Hall, R-Madison Township. It was passed by the House last week with a bipartisan vote of 66-25, with Rep. Angie King, R-Celina, voting against it.
The proposed funding adjustments would bring the municipal contribution for police into alignment with fire and closer into alignment with the Ohio State Highway Patrol. Employer contributions to the fund have not been adjusted since 1986, according to a news release from Abrams.
The legislation came as a result of a number of factors that have drastically impacted the stability of the Ohio Police and Fire Pension Fund, the release states. The bill has been touted by supporters as a way to address recruitment issues and understaffing of local police forces around the state.
"If we, the Legislature, fail to take action, the fund will become unstable, jeopardizing the pensions of our first responders," said Abrams during her floor speech. "Let's protect our first responders and ultimately, ensure the safety of our communities together."
It's important for individuals pursuing a career in law enforcement to have peace of mind that their retirement fund is healthy, St. Marys Safety/Service Director Greg Foxhoven said of the legislation.
"I think that's good for recruiting and retention as well," Foxhoven said. "Like I said, although the increase in the pension costs will have an impact on our end budget, I personally believe it's long overdue."
He added that because St. Marys is much smaller than larger cities like Columbus or Akron, the financial burden will be minimal.
"It's a very complex range of department sizes," Foxhoven said. "It's easy for me to say that (St. Marys Mayor Joe Hurlburt) and I support it because we have a smaller department."
If passed, the legislation would cost St. Marys about $10,000 a year in pension, he said.
"I can appreciate the phase-in approach (as well). We're grateful for that."
OP&F was created in 1965 by the Ohio General Assembly to provide pension and disability benefits to the state's full-time police officers and firefighters, according to the OP&F website. OP&F also provides survivor benefits and health care support for eligible retirees and their dependents.
Full-time Ohio police officers and firefighters do not receive Social Security benefits for their government service, the website states. Instead, they receive retirement benefits from the OP&F.
The legislation would definitely increase the amount of monies villages and cities contribute to the OP&F Pension fund, Minster Village Administrator Don Harrod said.
"Currently the village contributes about $77,000 annually to the fund on behalf of the police officers," he said. "An increase to 24% would increase that amount."
Harrod echoed Foxhoven's sentiment that the bill would have a lesser financial impact on Minster compared to larger cities.
"Being a smaller department the impact of the increase will be less on the Village of Minster than on some other larger departments, whose largest single budgetary expenditure is often public safety," he said.
The legislation is supported by the Fraternal Order of Police of Ohio, the Ohio Association of Professional Firefighters and the Ohio Chiefs Association. It is opposed by the Ohio Mayors Alliance.
Celina Mayor Jeff Hazel said that Celina's fire and police personnel are very important to the city. However, he's not sure that increasing police pension would help recruit more officers.
"I'm not sure it necessarily is going to attract somebody just because pension is going to go to 24% over the next few years," Hazel said. "I think most of the time people think about pensions when they're partway through their career, not to begin with."
Hazel said if passed, the legislation would mean about a $15,000 increase to Celina's contribution from the general fund to the OP&F.
"What they passed is what most people refer to as an unfunded mandate," Hazel said. "It does fall on all the local communities that have safety services to come up with that money. So the state does mandate that they pass it, and then it goes to the individual communities. For Celina, for the 18 officers in the first year, it will mean about $15,000 more out of the general fund."
In a general sense, $15,000 is not a large amount of money to contribute toward police pensions, Hazel said.
"And I certainly believe that we need to take care of our safety service (personnel)," he said. "We need to take care of all (our) employees when they choose to retire. So, I think that certainly will help them down the road."
However, Hazel continued that it's a $15,000 increase the first year of the bill's implementation. Then after that it grows by .75% each year for six years.
"As it grows over the next six years, it keeps compounding; next year, you know, instead of $15,000, it's going to be $34,000. So it does grow over the next six years because it compounds," Hazel said.
Following its recent passage in the House, the bill was passed on to the Senate for consideration.
