Skip to main content

May Board News

(The text below is reprinted from the news release by STRS on 5/22/15.)

Board Approves STRS Ohio Health Care Program Changes for 2016
Following a review that took place during its April meeting, the State Teachers Retirement Board approved the following changes to the STRS Ohio Health Care Program for 2016:

Prescription Drug Program — Adopt a methodology of setting the self-insured prescription program annual deductible to 63% of standard Medicare Part D deductible limit rounded down to the nearest $25 increment. Using this methodology, the 2016 Express Scripts deductible will increase to $225 from $200.

Regional Plans — Change the national base plan for non-Medicare regional plans to the Medical Mutual Basic Plan.

STRS Ohio staff will present 2016 premiums for board approval in June.

Last year, the Retirement Board approved a number of changes to the health care program for 2016. The changes approved last year included:

Premium subsidy and reimbursement
Reduce the subsidy multiplier by 0.1% to 2.1% per year of service. This completes the phased-in reduction the board began in 2012. A retiree with 30 or more years of service will receive a subsidy in 2016 of 63% of the total cost of the plan.

Continue the Medicare Part B premium reimbursement at 2015 levels for eligible benefit recipients enrolled in an STRS Ohio health plan.

Aetna Medicare Plan
Reduce the in-network deductible to $150 from $300.

Out-of-network coverage changes include: increasing out-of-pocket limit to $2,500 from $2,000; increasing specialist physician office visit copayments to $55 from $50; increasing coinsurance percentage to 8% from 6%; and increasing skilled nursing/home health care coinsurance to 8% from 2%.

Medical Mutual Plans
Discontinue the Plus Plan and transition those enrollees to the Basic Plan.

Increase the Basic Plan deductible and coinsurance out-of-pocket limits to:

Express Scripts Prescription Drug Plans
Increase the maximum annual expense per enrollee to $4,850 from $4,700.

STRS Ohio’s newsletters in July and October will detail the 2016 plan changes.

Funding Policy Discussion Continues
In May 2014, the Retirement Board approved changes to Board Policies regarding funding. Since that time, the board, STRS Ohio staff and the board’s actuarial consultant, Segal Consulting, have discussed ways to improve the board’s funding policy. That discussion continued at the May board meeting, as STRS Ohio staff discussed various metrics that could be used to provide input about the current status of the plan, as well as the expected future status of the plan. Proposed metrics to assess the plan status included:
  • Funded ratio — the ratio of plan assets compared to the plan’s accrued liabilities;
  • Funding period — the amount of time the fund projects it will need to reach 100% funded status;
  • Plan status forecast — the probability of significant deterioration of plan funding in the 10 years after the measurement date; and
  • Economic considerations — putting recent realized investment returns in context of long-term expected returns.
The board is expected to continue its discussion in the months ahead, evaluating under what conditions it might consider potential changes to plan design. These studies and discussions are a responsible part of the board’s fiduciary duties to help ensure a financially strong STRS Ohio.
Retirements Approved
The Retirement Board approved 132 active members and 94 inactive members for service retirement benefits.
Sheppard to Represent the State Superintendent of Public Instruction; Rafeld Recognized for Board Service
In April, State Superintendent of Public Instruction Richard A. Ross appointed his new Chief of Staff Jimmy Sheppard as his representative on the State Teachers Retirement Board. Sheppard formerly served as assistant policy director for education for Ohio Gov. John Kasich. Sheppard replaces Jason Rafeld on the board. The board recognized Rafeld for serving the public educators of Ohio with integrity during his time on the board.
Other STRS Ohio News
STRS Ohio Earns GFOA Certificate of Achievement for its Comprehensive Annual Financial Report
In April, STRS Ohio learned that its Comprehensive Annual Financial Report for fiscal year 2014 qualified for the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting. The retirement system has received the GFOA certificate each year since 1990. STRS Ohio consolidates financial, investment, actuarial and statistical information into one publication that meets the standards established by the GFOA to receive this recognition.

Popular posts from this blog

STRS Ohio October Board News

Actuarial Valuation Shows COLA Change, Investment Returns Lead to Funding Gains
During the October meeting of the State Teachers Retirement Board, actuarial consultant Segal Consulting presented key findings from its July 1, 2017, annual pension valuation report. This report provides a detailed look at the financial health of the pension fund. The most common ways to express the system’s financial condition are through the funded ratio and the funding period. This year’s valuation report shows the funded ratio — the value of assets compared to actuarial accrued liabilities (benefits earned by members of the system) — improved to 75.1% from 69.6% last year. The funding period — the amount of time needed to pay off the system’s unfunded liability under current assumptions and benefit levels — also improved, decreasing to 18.4 years from 26.6 last year. Segal shared that without the board’s action to reduce cost-of-living increases granted on or after July 1, 2017, to 0%, STRS Ohio’s fun…

STRS Ohio June Board News

Retirement Board Approves Health Care Premiums For 2018; Approximately 80% of Enrollees Will See No Premium Increase

At the June meeting of the State Teachers Retirement Board, the board approved 2018 premiums for all plans offered through the STRS Ohio Health Care Program. A complete list of these premiums is posted on the system’s website, or can be obtained by calling STRS Ohio’s Member Services Center toll-free at 888‑227‑7877. Additional information about the 2018 Health Care Program will be provided in upcoming newsletters and on the STRS Ohio website. In late October, all plan enrollees will receive personalized health care plan information in preparation for the fall open-enrollment period that extends from Nov. 1‑21, 2017.

When determining premiums, the Retirement Board and STRS Ohio staff consider the claims experience of plan enrollees, annual health care cost trend rates and administrative expenses for the program. Factors that proved favorable for 2018 rate setting includ…

STRS Ohio December Board News

CliftonLarsonAllen Completes Fiscal 2017 Annual Financial Statement Audit and Issues Clean Opinion

At the December meeting of the State Teachers Retirement Board, CliftonLarsonAllen reported the results of its audit of the STRS Ohio financial statements for the fiscal year ending June 30, 2017. The report showed that the retirement system’s financial statements were fairly stated in accordance with generally accepted accounting principles and that no material weaknesses in internal controls or instances of noncompliance were found. As a result, STRS Ohio received an unmodified opinion — also known as a “clean” opinion — which is the highest level of opinion that an organization can achieve.

STRS Ohio’s financial statements are included in the 2017 Comprehensive Annual Financial Report, which will be posted on the system’s website by Dec. 29, 2017. In addition to the financial statements, the report includes investment, actuarial and statistical information about STRS Ohio. This report c…