December stock swoon hit Ohio pension plans

Each of Ohio’s five public pension systems saw their investment portfolios lose money in 2018, putting more pressure on the systems, which serve nearly 1.9 million workers, retirees and beneficiaries.

The Ohio Highway Patrol Retirement System took a 4.73% hit, which is worse than its benchmark comparison’s 3.51% loss.

“As with the other systems, December 2018 was a difficult month, so the timing was not favorable to us,” said Mark Atkeson, director of the patrol retirement system.

The good news is that the fund has rebounded this year with a 10% gain, adding $68 million, he said.

The four other funds beat their benchmarks but still suffered losses: the Public Employees Retirement System lost 2.99 percent; Ohio Police & Fire Pension Fund (1.78%); State Teachers Retirement System (1.75%); and School Employees Retirement System, (1.28%).

The U.s.-china trade war was a catalyst for a fourthquarter downturn in the stock market, and inconsistent messages from the Federal Reserve amplified other concerns, according to RVK Inc., an investment consulting firm. RVK reported its analysis of the systems’ 2018 investment performance to the Ohio Retirement Study Council.

The five funds have total investment assets valued at more than $190 billion spread among stocks, bonds, real estate, cash, hedge funds and other investments. Each system sets an expected investment rate of return, ranging from 7.2% to 6%, that they need to consistently average or beat over the long haul.

In recent years, the pension systems have scaled back benefits and retiree health care coverage in an effort to keep the funds on solid ground.