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Showing posts from July, 2009

July Update From STRS Ohio

As the market downturn has hurt pension plans nation-wide, STRS is conducting various contingency planning scenarios to ensure the pension plan is more adequately funded for current and future retirees. Some of the changes, if implemented, could impact current retirees, potentially reducing or eliminating the COLA--cost of living adjustment--for example. This could pose a difficult scenario for current retirees, as a promised and likely planned-for benefits could be reduced.

In a future post, I will discuss the pros and cons of using the PLOP--Partial Lump Sum Option--available through STRS and other state pension systems. The PLOP transfers investment risk to the participant but can reduce the risk of negative changes to the pension systems such as a reduced COLA.

Notes from STRS' July Update are shown below.

To Your Prosperity,

Kevin Kroskey

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(From STRS Ohio's July Update)

LONG-TERM CONTINGENCY PLANNING WORK CONTINUES …