Functions

Functions - The Council performs several different functions. Obviously, the Council works closely with each of the state retirement systems in developing legislation, gathering and disseminating information, and responding to federal regulations. For example, the Council played a significant role in the enactment of legislation expanding the investment authority of the five systems to the "prudent expert" standard and requiring an actuarial analysis be attached to all retirement legislation having any measurable financial impact on the systems (S.B. 82 - eff. 3/6/97). Investment earnings constitute the largest source of revenue in each system, financing up to 65% of benefit costs. Simply put, the more investment income earned, the less contributions required from employers and employees, and ultimately Ohio taxpayers, who are the ultimate guarantors of the retirement benefits promised by the legislature. In order to monitor the systems' investments in light of their expanded investment authority, the Council recommended and the General Assembly enacted a requirement that the ORSC review the systems' investment programs twice each year (S.B. 190 - 7/13/00).

The Council monitors all federal legislation having an impact on governmental pension plans and ensures compliance with all federal regulation of such plans. Recent examples of such activity include authorizing the establishment of excess benefit plans allowed under Section 415(m) of the Internal Revenue Code (S.B. 190 - 123rd G.A.) and state compliance with the Taxpayer Relief Act of 1997, which limits the amount of nonqualified service credit members may purchase (H.B. 416 - 123rd G.A.).

The Council also undertakes studies of specific retirement and health care issues pursuant to legislative mandates and requests. In the last five years, for example, the Council issued the following reports:

Investment Performance Review (Fourth Quarter 2002), April 9, 2003

Review of the Adequacy of the Contribution Rates to OP&F, SERS, and STRS, November 5, 2003

Investment Performance Review (Second Quarter 2003), November 6, 2003

Review of the Adequacy of the Contribution Rates to HPRS and PERS, February 11, 2004

Addendum to the Review of the Adequacy of the Contribution Rates to OP&F, SERS, and STRS, February 11, 2004

Review of Contribution Rates Necessary to Actuarially Fund Post-Retirement Healthcare Benefits for HPRS, OP&F, PERS, SERS, and STRS, February 11, 2004

Investment Performance Review, May 12, 2004

Investment Performance Review, November 17, 2004

Investment Performance Review, May 11, 2005

Supplemental Contribution Rate for Members Who Elect to Participate in an Alternative Retirement Plan, June 28, 2005

Investment Performance Review, December 14, 2005

Adequacy of OP&F Contribution Rates, January 9, 2006

Investment Performance Review, May 10, 2006

Investment Performance Review, December 13, 2006

Fiduciary Performance Audit of the State Teachers Retirement System, December 2006

Fiduciary Performance Audit of the Ohio Police and Fire Pension Fund, December 2006

Report Regarding Service Purchases Experience of the Five Ohio Retirement Systems During FY Ending 2005, March 14, 2007

Investment Performance Review, June 13, 2007

Investment Performance Review, November 14, 2007

In addition, the Council publishes the following reports and updates them as needed: A History of Benefit Changes in the Public Employees Retirement Systems of Ohio; Benefits Provided by Ohios Public Pension Systems: Comparative Tables of the Five Statewide Pension Systems; Acquiring Service Credit in the Public Pension Funds of Ohio; and Pension Profiles. The Council also publishes annually its Evaluations and Recommendations Regarding the Operation of the State Retirement Systems and their Funds. These reports serve not only to keep the public updated and informed about developments in Ohio's five public pension funds, but also to make the public aware of the Council and its function. These reports can be found on the Council's website: www.orsc.org. The website also contains copies of all legislative analyses prepared by staff, pension-related brochures, and an archive of all changes to the laws governing the retirement systems.

Several state agencies rely on the Council for technical assistance and information in performing their statutory duties. The Legislative Service Commission often turns to the Council for assistance in drafting pension legislation or preparing fiscal notes on such legislation. From time to time, the Attorney General calls upon the Council when interpreting the meaning and intent of a particular state pension enactment. The state personnel and tax departments also use the Council as a pension information resource, as do individual legislators and their staffs with respect to constituent matters.

Nationally, the Council has a long-standing relationship with each of the major national associations dealing with public pension plans: the Governor Finance Officers Association, National Association of Public Pension Attorneys, National Association of State Retirement Administrators, National Conference of Public Employees Retirement Systems, National Conference of State Legislatures, and National Council on Teacher Retirement. These national associations have invited Council staff to speak at educational conferences/workshops, and have referred individuals from other states to the Council for general information and assistance. Most recently, the Council director was selected to represent the perspective of state officials and the interests of state governments in reforming the Social Security system on the Task Force on Social Security Reform for the National Conference of State Legislatures. The Council maintains an extensive library of information on both private and public pension plans, including Social Security and Medicare, and regularly exchanges reports and studies with other state agencies and interested parties.