- 4 - statewide pension fund for police officers and firefighters. The State Fund was created to replace unfunded plans of the City and other municipalities with a fully funded pension plan. The State Fund assumed and guaranteed the pre-1967 pension liabilities of Ohio municipalities, including the City (the State Fund Obligation). In addition, the State law provided that pension liabilities for police officers and firefighters accruing on and after January 1, 1967, would be supported by current employer and employee contributions. Pursuant to the State law, the value of the transferred liabilities and assets of each municipality was determined by The Wyatt Company (Wyatt), an actuarial company employed by the State to make the calculations. Wyatt computed the present value of each municipality's accrued unfunded pension liability, using a discount factor of 4.25 percent, compounded annually (the mathematical equivalent of 4.21 percent compounded semiannually), and certain actuarial assumptions based on mortality tables. Wyatt determined the present value of the accrued unfunded liabilities of the City Fund that were transferred to the State Fund, to be $44,638,971. Of that amount, $1,929,702 was satisfied by assets of the City Fund, and the City was credited with $21,470 of accrued interest, resulting in a net accrued liability of $42,687,799.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011