Ohio Police and Fire Pension Fund 2004 Employer Seminar

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2007 OAPT Conference Ohio Police and Fire
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Ohio Police and Fire Facts and Trends

• Began Operations in 1967
• Provides Retirement, Disability, and Survivor
  Benefits to Full-time Police Fire
• 12.8 Billion in Assets (July, 2007)
• 111th Largest Pension Plan in US
• Covers 905 Employers (Cities, Townships,
  Villages)

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OPF Facts and Trends (continued)

• Total Membership-More than 52,000
• Major Revenue Sources are Member and Employer
  Contributions, and Investments
• Investments Constitute 72 of Revenues
• Member Healthcare Contributions are 24 times what
  they were 15 years ago!
• Since 1987, Benefit payments have exceeded cash
  contributions
• Unfunded liabilities and 30-year rule.

4
Will there be Contribution Rate Changes?

• Current Rate
• Police Employee 10
• Police Employer 19.5
• Fire Employee 10
• Fire Employer 24

• Proposed Rate
• Police Employee 12
• Police Employer 24
• Fire Employee 12
• Fire Employer 24

5
Contribution Rate Status

• No agenda setting until 2008
• Who will chair the ORSC?
• What will political climate be?
• Push to raise retirement age to 52?

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Economic Impact of OPF on Ohio

• Study Commissioned by OPF in 2006
• Cochran Group/Driscoll Fleeter
• How do OPF Member Benefits contribute to fiscal
  well-being?
• Every dollar creates 1.60 in economy
• Every 60,000 spent 1 new job
• Local Focus-Each Senate and House District
• Economic output created in 2006 1.1 billion
• Study available on www.op-f.org

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• EMPLOYER REPORTING

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Pick-Up Plan Documentation

• Many Employers pick up member pension
  deductions
• Recent IRS Revenue Ruling 2006-43
• Adoption/Maintenance of pick-up must be evidenced
  by a written document
• OPERS reviewing employer resolutions for
  compliance
• How is OPF responding?

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Pick-Up Plan Documentation (cont.)

• OAC Section 742-7-14-Recognition of Pick-Up
  Contributions
• All Employers had to File Resolutions by 11/30/04
• Model OPF Resolution Language Required (On
  Website)
• Model Resolution Approved through IRS PLR
• Under IRC Section 7805(b)(8) the Revenue Ruling
  does not modify or revoke any PLR issued prior
  to 8/28/06.

10
OPF Forms Update

• Personal History Record-Enrollment Form
• Revised to cover both Police and Fire
• Summary of Payment Remittance Recap
• Accompanies all payments-mandatory for monthly
  payroll reports and payments
• Subject to 30-Day Cure Period.

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Special Penalty Provisions

• Statutory Penalties exist for late Payments and
  Reports.
• OAC Section 742-8-13 allows for Substantial (75)
  Penalty Reductions if
• New clerk hired and not trained by OPF
• New employer and not trained by OPF
• Natural disaster, Fire, Flood

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Special Penalty Provisions (cont.)

• Extended Medical Leave
• Theft in Office by Responsible Filer
• Payment of Penalties would result in Fiscal
  Emergency Status
• Eligible Employers must Request Penalty
  Reductions in Writing

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2006 Reporting Facts and Figures

• Over 12,000 Payroll Reports Processed.
• Approximately 4,000 Initial Notice Calls
  Placed.
• Approximately 2,500 30-Day Letters Mailed.
• Less contact than prior years. Transitional
  period. Goal is to reduce contact further!

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How to Report Retro vs. Adjustments

• Retro
• Report under Code 6.
• Provide lump sum earning begin and end dates.
• Report dollars only-no hours base or hours paid.
  Will always be adjustment.
• Create additional entry lines if more than one
  calendar year is involved.
• Report within current payroll-not separately.

• Adjustments
• Provide entry lines for each payroll reporting
  period.
• Report within current payroll-not separately.
• Report under appropriate code-using original
  codes.
• May involve hours base and hours paid as well as
  dollars.
• May involve either - or adjustments.
• Use work code A.

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What to do if you have a New Hire

• Have member complete Personal History Record
  (Form A-F or A-P).
• Have member submit to pre-employment physical
  before hire date.
• Send OPF completed personal history record and
  pre-employment physical test results within 60
  days of hire date.

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What to do if you have a New Hire (cont.)

• Have new member complete, sign and date Social
  Security Form SSA-1945.
• This form explains to the member the potential
  impact of two provisions in law (windfall
  elimination and government pension offset).
• Submit a copy of the signed form to OPF.
• Forms available from OPF or SSA website.

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How Can We Make Reporting Easier?
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OPF Employer Services

• Employer education department implemented in
  January, 2006.
• Site visits available upon request.
• Employer satisfaction survey (distributed 1/07).
  44 response rate.

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OPF Employer Services

• Seminars (5 regions-April 10-24, 2007).
• Establishing benchmarks for response time to
  employer inquiries (2007).
• Billing task force.
• Employer Digest.

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OPF Employer Services (cont.)

• Employer Manual (2007 publication and
  distribution).
• Employer Advisory Group-Meets quarterly.
• Online Payroll Reporting (implementation
  pending).
• Employer self-service (WEB).

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Ohio Police and Fire Web Site

• Visit our Web Site at www.op-f.org.
• We have an Employer Link that will give you
  information regarding
• Payroll File Uploads.
• OPF Forms and how to complete them.
• Pick-Up Resolution Information.
• Governmental Accounting Standard Board (GASB)
  Reports.
• Training and Seminar Information.
• Billing and Deadline Dates.
• The Employer Digest.
• Staff Information.
• Calendar of Events.