(The text below is reprinted from the news release by STRS on 4/29/11.)
CONTRIBUTION CHANGE REMOVED FROM BUDGET BILL
The proposed state budget no longer includes language that would set the contributions for public employers and their employees to 12% from each. On April 28, Substitute House Bill 153 (commonly referred to as the "budget bill") was presented at the House Finance and Appropriations Committee meeting with the proposed contribution change removed. This now enables any discussion of contributions to be held within the context of the pension reform package proposed by the five Ohio statewide public pension systems.
STRS Ohio's proposed pension reform plan calls for a 3% increase in member contributions, to 13% from 10%, and no change in the current 14% employer contributions as a way to help the pension fund meet the 30-year funding requirement. STRS Ohio was on record as opposing the 12-and-12 scenario, noting that the resulting decrease in revenue would require additional cuts in benefits for STRS Ohio's active members and retirees and/or even more in contributions from members. Many STRS Ohio members also voiced their concerns with legislators about the budget bill language.
This most recent step in the House committee helps allow any proposed changes to STRS Ohio's plan to be discussed and their actuarial impact analyzed in conjunction with the other plan components. We will continue to monitor Sub. H.B. 153 as it moves through the legislative process.
OTHER ITEMS OF NOTE
ACTIONS AROUND THE COUNTRY ARE STRENGTHENING PUBLIC PENSION PLANS
Earlier this week, some STRS Ohio members may have read articles about a study released by the Pew Center on the States, titled "The Widening Gap: The Great Recession's Impact on State Pension and Retiree Health Care Costs." Unfortunately, much of the report relies on 2009 data, plus does not take into account the actions many states have taken to preserve or restore the affordability and sustainability of their pension plans. In Ohio, all five pension systems have been proposing changes since 2009 that are designed to "close the gap" on funding levels. The introduction of House Bill 69 and Senate Bill 3 on Feb. 1, 2011, at the Statehouse finally brought this important discussion to the Legislature.
Information about changes public pension plans throughout the country have made or are proposing can be found on STRS Ohio's Web site under "Legislative News" on the home page (https://www.strsoh.org/quicklinks/legislative.html). Also, Web site visitors can access a joint response to the Pew study from the National Association of State Retirement Administrators and the National Council on Teacher Retirement on the home page. (STRS Ohio is a member of both of these organizations.) Just click on "Additional Information Resources" that can be found under the "Special Pension Plan Reform Coverage" section (https://www.strsoh.org/legislation/resources/main.html).
WEEKLY WEBCASTS DESIGNED TO HELP MEMBERS RETIRING THIS SUMMER
A one-hour live webcast titled "Retirement Countdown 2011" will premiere on May 11. This program is targeted to members who have already met with a benefits counselor and have current retirement estimates, but need help completing their service retirement application and health care program enrollment. Viewers will be able to submit questions to the webinar speakers in "real time." The one-hour webinars will start on Wednesday, May 11, and are offered each Wednesday thereafter through June 29, from 4:30 to 5:30 p.m. To register for one of the sessions, go to the STRS Ohio Web site home page where instructions can be found at: https://www.strsoh.org/whatsnew/news48.html. Registrations can be taken up to 4 p.m. on the day of the session.
CONTRIBUTION CHANGE REMOVED FROM BUDGET BILL
The proposed state budget no longer includes language that would set the contributions for public employers and their employees to 12% from each. On April 28, Substitute House Bill 153 (commonly referred to as the "budget bill") was presented at the House Finance and Appropriations Committee meeting with the proposed contribution change removed. This now enables any discussion of contributions to be held within the context of the pension reform package proposed by the five Ohio statewide public pension systems.
STRS Ohio's proposed pension reform plan calls for a 3% increase in member contributions, to 13% from 10%, and no change in the current 14% employer contributions as a way to help the pension fund meet the 30-year funding requirement. STRS Ohio was on record as opposing the 12-and-12 scenario, noting that the resulting decrease in revenue would require additional cuts in benefits for STRS Ohio's active members and retirees and/or even more in contributions from members. Many STRS Ohio members also voiced their concerns with legislators about the budget bill language.
This most recent step in the House committee helps allow any proposed changes to STRS Ohio's plan to be discussed and their actuarial impact analyzed in conjunction with the other plan components. We will continue to monitor Sub. H.B. 153 as it moves through the legislative process.
OTHER ITEMS OF NOTE
ACTIONS AROUND THE COUNTRY ARE STRENGTHENING PUBLIC PENSION PLANS
Earlier this week, some STRS Ohio members may have read articles about a study released by the Pew Center on the States, titled "The Widening Gap: The Great Recession's Impact on State Pension and Retiree Health Care Costs." Unfortunately, much of the report relies on 2009 data, plus does not take into account the actions many states have taken to preserve or restore the affordability and sustainability of their pension plans. In Ohio, all five pension systems have been proposing changes since 2009 that are designed to "close the gap" on funding levels. The introduction of House Bill 69 and Senate Bill 3 on Feb. 1, 2011, at the Statehouse finally brought this important discussion to the Legislature.
Information about changes public pension plans throughout the country have made or are proposing can be found on STRS Ohio's Web site under "Legislative News" on the home page (https://www.strsoh.org/quicklinks/legislative.html). Also, Web site visitors can access a joint response to the Pew study from the National Association of State Retirement Administrators and the National Council on Teacher Retirement on the home page. (STRS Ohio is a member of both of these organizations.) Just click on "Additional Information Resources" that can be found under the "Special Pension Plan Reform Coverage" section (https://www.strsoh.org/legislation/resources/main.html).
WEEKLY WEBCASTS DESIGNED TO HELP MEMBERS RETIRING THIS SUMMER
A one-hour live webcast titled "Retirement Countdown 2011" will premiere on May 11. This program is targeted to members who have already met with a benefits counselor and have current retirement estimates, but need help completing their service retirement application and health care program enrollment. Viewers will be able to submit questions to the webinar speakers in "real time." The one-hour webinars will start on Wednesday, May 11, and are offered each Wednesday thereafter through June 29, from 4:30 to 5:30 p.m. To register for one of the sessions, go to the STRS Ohio Web site home page where instructions can be found at: https://www.strsoh.org/whatsnew/news48.html. Registrations can be taken up to 4 p.m. on the day of the session.