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Showing posts from October, 2017

STRS Ohio September Board News

Board Reviews Health Care Subsidy Options for 2019 and Beyond

During the September meeting of the State Teachers Retirement Board, the board continued its discussion on the solvency of the Health Care Fund and how to provide a meaningful subsidy for plan enrollees. The Health Care Fund has a balance in excess of $3 billion and is currently estimated to remain solvent through 2034. Solvency is largely driven by the subsidy provided to each enrollee — both the initial subsidy level and the growth of the subsidy. The STRS Ohio Health Care Program is currently funded through premiums charged to plan enrollees, government reimbursements and investment earnings on the fund. STRS Ohio no longer allocates a portion of employer contributions to the Health Care Fund, as all of the employer contributions are needed to fund pensions.
Finding solutions for health care funding is challenging for several reasons. The board has already implemented many cost-saving options available through plan desig…