Excerpt from the Columbus Dispatch
The stock market turmoil linked to President Donald Trump's tariffs has increased Americans' anxiety over their retirement accounts.
A look at the portfolios of Ohio's five public pension funds shows combined losses of roughly $4 billion since Jan. 1 − a number that changes by the day.
The retirement systems ended 2024 with $253.2 billion on the books, thanks largely to a robust stock market last year. But those gains − and potentially more − stand to whittle away as the market cools in response to the tariffs and other factors.
The five systems, which serve 1.16 million Ohio workers and retirees, are funded through a combination of employer and employee contributions and returns on investments.
The pension boards set their expected annual rate of return, ranging from a low of 6.9% for Ohio Public Employees Retirement System to a high of 7.5% for Ohio Police & Fire. When they miss those anticipated returns, it can take years to recover.
For the teachers' pension system, investment returns are crucial to making up a $4 billion annual negative cash flow − the fund pays out more in benefits than it receives in contributions. "It must be made up through investment returns, leaving STRS Ohio very sensitive to market fluctuations," said Aaron Hood, interim executive director.
