Ohio Revised Code
Chapter 742 | Police and Fire Pension Fund
Section 742.14 | Actuarial Valuation of Pension Assets, Liabilities, and Funding Requirements of Ohio Police and Fire Pension Fund.

Effective: September 29, 2013
Latest Legislation: House Bill 59 - 130th General Assembly
(A) The board of trustees of the Ohio police and fire pension fund shall have prepared triennially by or under the supervision of an actuary an actuarial valuation of the pension assets, liabilities, and funding requirements of the Ohio police and fire pension fund as established pursuant to sections 742.01 to 742.61 of the Revised Code. The actuary shall complete the valuation in accordance with actuarial standards of practice promulgated by the actuarial standards board of the American academy of actuaries and prepare a report of the valuation. The report shall include all of the following:
(1) A summary of the benefit provisions evaluated;
(2) A summary of the census data and financial information used in the valuation;
(3) A description of the actuarial assumptions, actuarial cost method, and asset valuation method used in the valuation, including a statement of the assumed rate of payroll growth and assumed rate of growth or decline in the number of members of the fund contributing to the pension fund;
(4) A summary of findings that includes a statement of the actuarial accrued pension liabilities and unfunded actuarial accrued pension liabilities;
(5) A schedule showing the effect of any changes in the benefit provisions, actuarial assumptions, or cost methods since the last triennial actuarial valuation;
(6) A statement of whether employee and employer contributions to the pension fund are expected to be sufficient to satisfy the funding objectives established by the board.
The first triennial report shall be made not later than November 1, 2013, to the Ohio retirement study council, the director of budget and management, and the standing committees of the house of representatives and the senate with primary responsibility for retirement legislation immediately upon its availability and thereafter triennially, not later than the first day of November.
(B) At such times as the board determines, and at least once in each quinquennial period, the board shall have prepared by or under the supervision of an actuary an actuarial investigation of the mortality, service, and other experience of the members of the fund and of other system retirants, as defined in section 742.26 of the Revised Code, who are members of a police department or a fire department to update the actuarial assumptions used in the actuarial valuation required by division (A) of this section. The actuary shall prepare a report of the actuarial investigation. The report shall be prepared and any recommended changes in actuarial assumptions shall be made in accordance with the actuarial standards of practice promulgated by the actuarial standards board of the American academy of actuaries. The report shall include all of the following:
(1) A summary of relevant decrement and economic assumption experience observed over the period of the investigation;
(2) Recommended changes in actuarial assumptions to be used in subsequent actuarial valuations required by division (A) of this section;
(3) A measurement of the financial effect of the recommended changes in actuarial assumptions;
(4) If the investigation required by this division includes the investigation required by division (E) of this section, a report of the result of that investigation.
The board shall submit the report to the Ohio retirement study council and the standing committees of the house of representatives and the senate with primary responsibility for retirement legislation not later than the first day of November following the last fiscal year of the period the report covers.
(C) The board shall have prepared by or under the supervision of an actuary an actuarial analysis of any introduced legislation expected to have a measurable financial impact on the pension fund. The actuarial analysis shall be completed in accordance with the actuarial standards of practice promulgated by the actuarial standards board of the American academy of actuaries. The actuary shall prepare a report of the actuarial analysis, which shall include all of the following:
(1) A summary of the statutory changes that are being evaluated;
(2) A description of or reference to the actuarial assumptions and actuarial cost method used in the report;
(3) A description of the participant group or groups included in the report;
(4) A statement of the financial impact of the legislation, including the resulting increase, if any, in the employer normal cost percentage; the increase, if any, in actuarial accrued liabilities; and the per cent of payroll that would be required to amortize the increase in actuarial accrued liabilities as a level per cent of covered payroll for all active members of the fund over a period not to exceed thirty years;
(5) A statement of whether the scheduled contributions to the system after the proposed change is enacted are expected to be sufficient to satisfy the funding objectives established by the board.
Not later than sixty days from the date of introduction of the legislation, the board shall submit a copy of the actuarial analysis to the legislative service commission, the standing committees of the house of representatives and the senate with primary responsibility for retirement legislation, and the Ohio retirement study council.
(D) The board shall have prepared triennially a report giving a full accounting of the revenues and costs relating to the provision of benefits under section 742.45 of the Revised Code. The first triennial report shall be made as of December 31, 2013, and the thirty-first day of December triennially thereafter. The report shall include the following:
(1) A description of the statutory authority for the benefits provided;
(2) A summary of the benefits;
(3) A summary of the eligibility requirements for the benefits;
(4) A statement of the number of participants eligible for the benefits;
(5) A description of the accounting, asset valuation, and funding method used to provide the benefits;
(6) A statement of the net assets available for the provision of the benefits as of the last day of the fiscal year;
(7) A statement of any changes in the net assets available for the provision of benefits, including participant and employer contributions, net investment income, administrative expenses, and benefits provided to participants, as of the last day of the fiscal year;
(8) For the last six consecutive fiscal years, a schedule of the net assets available for the benefits, the annual cost of benefits, administrative expenses incurred, and annual employer contributions allocated for the provision of benefits;
(9) A description of any significant changes that affect the comparability of the report required under this division;
(10) A statement of the amount paid under division (B) of section 742.45 of the Revised Code.
The board shall submit the report to the Ohio retirement study council, the director of budget and management, and the standing committees of the house of representatives and the senate with primary responsibility for retirement legislation immediately upon its availability and not later than the thirtieth day of June following the year for which the report was made.
(E) At least once in each quinquennial period, the board shall have prepared by or under the supervision of an actuary an actuarial investigation of the deferred retirement option plan established under section 742.43 of the Revised Code. The investigation shall include an examination of the financial impact, if any, on the fund of offering the plan to members.
The actuary shall prepare a report of the actuarial investigation. The report shall include a determination of whether the plan, as established or modified, has a negative financial impact on the fund and, if so, recommendations on how to modify the plan to eliminate the negative financial impact. If the actuarial report indicates that the plan has a negative financial impact on the fund, the board may modify the plan or cease to allow members who have not already done so to elect to participate in the plan. The firefighter and police officers employers' contributions shall not be increased to offset any negative financial impact of the plan.
If the board ceases to allow members to elect to participate in the plan, the rights and obligations of members who have already elected to participate shall not be altered.
The board may include the actuarial investigation required under this division as part of the actuarial investigation required under division (B) of this section. If the report of the actuarial investigation required by this division is not included in the report required by division (B) of this section, the board shall submit the report required by this division to the Ohio retirement study council and the standing committees of the house of representatives and the senate with primary responsibility for retirement legislation not later than the first day of November following the last fiscal year of the period the report covers.

Structure Ohio Revised Code

Ohio Revised Code

Title 7 | Municipal Corporations

Chapter 742 | Police and Fire Pension Fund

Section 742.01 | Police and Fire Pension Fund Definitions.

Section 742.012 | Refund of Contributions to Ohio Police and Fire Pension Fund Exceeding Salary Benchmarks.

Section 742.013 | Definitions for "Terminal Pay" and "Salary".

Section 742.02 | Creation and Purpose of Fund.

Section 742.03 | Board of Trustees to Administer and Control Fund.

Section 742.031 | Orientation Program Required for New Members - Continuing Education.

Section 742.032 | Members With Excessive Travel Expenses Ineligible for Another Term.

Section 742.04 | Election of Employee Members, Firefighter Retirant Member, and Police Retirant Member.

Section 742.041 | No Election if Only One Candidate Nominated.

Section 742.042 | Candidate Campaign Finance Statements - Donor Statement of Independent Expenditures.

Section 742.043 | Filing of Statements - Prohibited Campaign Activities.

Section 742.044 | Complaint Alleging Violation of Rc 742.043 - Procedure - Fine.

Section 742.045 | Adoption of Election Rules - Certification of Nominating Petitions and Election Results.

Section 742.046 | Disqualification of Convicted Member - Misconduct in Office - Removal Procedure.

Section 742.05 | Vacancy on Board of Trustees.

Section 742.06 | Oath or Affirmation of Office.

Section 742.07 | Meetings of Board of Trustees.

Section 742.08 | Expenses - Liability Insurance.

Section 742.09 | Attorney General Is Legal Counsel for Board.

Section 742.091 | Actions; Venue.

Section 742.10 | Powers of Board.

Section 742.101 | Transfer Expenses From Guarantee Fund to Expense Fund.

Section 742.102 | Travel Expense Policies - Bonus Policy - Budget.

Section 742.103 | Ethics Policy - Commission Approval - Ethics Training.

Section 742.104 | Chief Investment Officer - Supervision Duties - Monitoring of Securities Transactions.

Section 742.105 | Selection of Internal Auditor.

Section 742.11 | Investment Powers of Board.

Section 742.111 | Prohibited Business Transactions.

Section 742.112 | Restrictions on Fiduciaries.

Section 742.113 | Conflicts of Interest.

Section 742.114 | Designation of Ohio-Qualified Agents - Selection Policy - Utilization - Annual Report.

Section 742.115 | Annual Disclosures to Ohio Ethics Commission.

Section 742.116 | Designation of Ohio-Qualified Investment Managers - Utilization - Annual Report.

Section 742.12 | Bonds Purchased From Taxing Districts.

Section 742.13 | Record of Proceedings Between Board and Taxing District.

Section 742.14 | Actuarial Valuation of Pension Assets, Liabilities, and Funding Requirements of Ohio Police and Fire Pension Fund.

Section 742.15 | Collecting and Retaining Data.

Section 742.16 | Amortizing Unfunded Actuarial Accrued Pension Liability.

Section 742.161 | Adjustment to Age and Years of Service Credit.

Section 742.17 | Form of Application or Election.

Section 742.21 | Service Credit for Membership in State or Municipal Retirement System.

Section 742.211 | Transfers of Service Credit and Contributions Between System and Cincinnati Retirement System.

Section 742.212 | Eligibility for Credit for Service in Cincinnati Retirement System.

Section 742.213 | Transferring Contributions to Cincinnati Retirement System.

Section 742.214 | Transferring Contributions on Deposit From Non-Uniform Retirement System.

Section 742.22 | Restoration to Active Duty After Receiving Disability Benefits.

Section 742.221 | Conditions for Receiving Credit for Time Spent on Pregnancy or Medical Disability Leave.

Section 742.23 | Municipal Police Department Employee Credit for Service in Fire Department.

Section 742.24 | Municipal Fire Department Employee Credit for Service in Police Department.

Section 742.25 | Member Credit for Service Credit in Former Pension Funds.

Section 742.251 | Credit for Full Time Out-of-State or Federal Service.

Section 742.26 | Employment of Opfpf or Other State Retirement System Retirant.

Section 742.27 | Purchasing Service Credit for Lay Off Period.

Section 742.30 | Paying Employer's Accrued Liability.

Section 742.301 | Penalty and Interest on Late Payment of an Employer's Accrued Liability.

Section 742.31 | Contribution by Employee; Adjustments by Board.

Section 742.311 | Annual Review of Adequacy of Contribution Rates.

Section 742.32 | Reporting Employee Deductions.

Section 742.33 | Police Officer Employers' Contribution.

Section 742.34 | Firefighter Employers' Contribution.

Section 742.35 | Payment of Employer's Contribution.

Section 742.351 | Notice of Member's Election to Retire.

Section 742.352 | Failure to Transmit Certain Reports and Payments Concerning Deductions.

Section 742.353 | Failure to Transmit Certain Reports and Payments Concerning Retirement Election.

Section 742.361 | Certification of Amount Required to Be Paid.

Section 742.362 | Annual Payment in Lieu of Employer Contribution.

Section 742.37 | Rules for Disbursement of Benefits and Pensions.

Section 742.371 | Credit for Time Previously Served in Active Full-Time Service of Ohio Police or Fire Department.

Section 742.374 | Additional Pension Payments for Retirees on and After 12-31-71.

Section 742.375 | Credit for Time Served in State Highway Patrol Retirement System.

Section 742.376 | Credit for Service as a Full-Time Police Officer or Firefighter Prior to 1-1-67.

Section 742.377 | Increasing Survivor Benefits.

Section 742.378 | Additional Monthly Payment.

Section 742.3710 | Increasing Survivor Benefits.

Section 742.3711 | Optional Plans Upon Retirement.

Section 742.3712 | Increase in Monthly Pension, Allowance or Benefit Effective 7-1-81.

Section 742.3713 | Increase in Monthly Benefit Effective 11-15-81.

Section 742.3714 | Designating Contingent Dependent Beneficiary.

Section 742.3715 | Election of Retiree to Change to Optional Plan.

Section 742.3716 | Annual Increases in Pension or Benefits.

Section 742.3717 | Annual Cost of Living Increase.

Section 742.3718 | Minimum Pension or Benefit.

Section 742.3719 | Increase in Benefit or Allowance When Irc 415 Limits Increased.

Section 742.3721 | Qualified Governmental Excess Benefit Arrangement Maintained and Established.

Section 742.38 | Minimum Medical Testing and Diagnostic Standards or Procedures to Be Incorporated Into Physical Examinations for Prospective Members.

Section 742.381 | Annual Report Disability Retirement Experience of Each Employer.

Section 742.39 | Eligibility for Disability Benefit.

Section 742.40 | Disability Benefit Recipient to Agree to Obtain Recommended Medical Treatment.

Section 742.41 | Annual Statement of Funds.

Section 742.42 | Maintenance of Individual Account.

Section 742.43 | Deferred Retirement Option Plan Established.

Section 742.44 | Electing to Participate in Deferred Retirement Option Plan.

Section 742.441 | Effect of Electing to Participate in Deferred Retirement Option Plan.

Section 742.442 | Determining Pension Amount if Electing to Participate in Deferred Retirement Option Plan.

Section 742.443 | Accrual of Monthly Pension Amount, Cost-of-Living Increases and Member Contributions if Electing to Participate in Deferred Retirement Option Plan.

Section 742.444 | Termination of Participation in Deferred Retirement Option Plan.

Section 742.445 | Termination of Participation in Deferred Retirement Option Plan Because of Acceptance of Disability Benefit.

Section 742.446 | Death Benefit if Electing to Participate in Deferred Retirement Option Plan.

Section 742.447 | Verifying Termination of Active Service.

Section 742.45 | Deduction From Benefit Payment for Group Health Insurance.

Section 742.451 | Additional Deposits to Fund Medical Expenses.

Section 742.46 | Vested Right to Pension or Benefit.

Section 742.461 | Restitution Order Based on Theft in Office or Certain Sex Offenses.

Section 742.462 | Order for Division of Marital Property.

Section 742.463 | Forfeiture of Retirement Benefits Under Rc 2929.192.

Section 742.464 | Benefits Subject to Termination.

Section 742.47 | Exemption From Attachment, Garnishment, Levy, or Seizure Under Any Legal or Equitable Process.

Section 742.48 | Written Notice of Waiver.

Section 742.50 | Death Benefit.

Section 742.51 | Election to Transfer From Public Employees Retirement System to Police and Fire Pension Fund.

Section 742.511 | Transfer of Police Officers of Newly Incorporated Municipality Prior to 12-1-83.

Section 742.512 | Transfer of Police Officers of Newly Incorporated Municipality on or After 12-1-83.

Section 742.513 | Township Officer Assuming Municipal Status May Transfer to Fund.

Section 742.514 | Transfer of Former Cincinnati Park Police Officers to Fund.

Section 742.515 | Firefighter's Election to Transfer From Public Employees Retirement System.

Section 742.516 | Firefighter's Election to Transfer to Public Employees Retirement System.

Section 742.52 | Purchasing Military Service Credit.

Section 742.521 | Credit for Military Service.

Section 742.53 | Long Term Care Insurance.

Section 742.54 | Volunteer Firemen's Relief and Pension Fund Operation and Maintenance.

Section 742.55 | Itemization of Purchases and Expenditures.

Section 742.56 | Payroll Deduction Plan for Payments for Service Credits.

Section 742.57 | Payments by Vouchers From State Treasury.

Section 742.58 | Lump Sum Death Benefit Payment.

Section 742.59 | Creation of Funds - Trustees.

Section 742.60 | Funds to Be Separate and Distinct Legal Entities.

Section 742.61 | Treasurer of State Is Custodian of Police and Fire Pension Fund.

Section 742.62 | Ohio Public Safety Officers Death Benefit Fund.

Section 742.63 | Adoption of Rules for Management of Fund and Disbursement of Benefits.

Section 742.64 | Recovering Erroneous Payments.

Section 742.99 | Penalty.