Kevin Kroskey's Ohio Faculty Advisor

(The text below is reprinted from the news release by STRS on 6/30/11.) The legislative conference committee dealing with the state budget did not include a shift in employer/employee contributions for the five statewide pension systems in its final report issued on Monday, June 27.  The Ohio Senate then passed the budget bill on June 28, followed by passage in the Ohio House of Representatives on June 29. The bill then went to the governor for his signature. During the budget discussions, STRS Ohio voiced its concern about the change, advocating that any discussion of contributions should be held within the context of the pension reform legislation proposed by the five Ohio statewide public pension systems.  STRS Ohio is grateful for the many STRS Ohio members and constituency groups who also shared this message with members of the Legislature. Discussions about future pension reform now shift to the Ohio Retirement Study Council (ORSC), the legislative oversi...

(The text below is reprinted from the news release by STRS on 6/15/11.) Members who have been following communications from STRS Ohio during the past few months know that the system has continually expressed its concern about one component of Gov. John Kasich's proposed state budget that was first presented in March. This component called for a shift in employer/employee contributions from the five statewide pension systems. Employers would pay 2% less based on payroll and employees would pay 2% more. For STRS Ohio, this could mean an increase in member contributions to 12% from the current 10%, and a decrease in employer contributions to 12% from 14%. Requiring employers to pay less was recommended as a way to help offset the cutbacks in state funding to state and local governments. STRS Ohio Executive Director Michael Nehf, as well as constituency groups and individual STRS Ohio members, voiced their concern with legislators about this budget bill language. In subsequent acti...

(The text below is reprinted from the news release by STRS on 5/13/11.) ORSC ANNOUNCES PLANS TO HIRE ACTUARY AND POLICY ADVISOR TO REVIEW PENSION LEGISLATION During the May 12, 2011, meeting of the Ohio Retirement Study Council (ORSC), Sen. Keith Faber, who chairs the committee, announced that he is creating a subcommittee to develop a request for proposal for an independent actuary and policy advisor in regard to pension reform issues. This consulting expert will be asked to help the ORSC members analyze the plans the five public pension systems have developed to strengthen the solvency of their pension funds and other potential retirement-related changes. Faber noted he wants someone who can advise on reform trends in other states and the private sector. Through media reports, Faber indicated the Senate is not likely to proceed with any pension legislation until this review is completed. It is expected that this process will take pension reform discussions into the fall. The me...

(The text below is reprinted from the news release by STRS on 5/19/11.) This week, the State Teachers Retirement Board held its monthly meeting. Following the regularly scheduled meetings, a report titled "Board News" is posted on the STRS Ohio Web site, as well as mailed to a number of members and education organization representatives who have requested it. As a member of STRS Ohio with an e-mail address on file, you will also receive this report each month. The May report follows. CONTRIBUTING MEMBER TAIYIA L. HAYDEN WINS BOARD SEAT Taiyia (Tai) L. Hayden was reelected to the State Teachers Retirement Board in the recent election. The term for this seat begins on Sept. 1, 2011, and ends on Aug. 31, 2015. PENSION LEGISLATION ON HOLD PENDING INDEPENDENT REVIEW During the May 12, 2011, meeting of the Ohio Retirement Study Council (ORSC), Sen. Keith Faber, who chairs the committee, announced that he is creating a subcommittee to develop a request for proposal for an in...

(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 ...

(The text below is reprinted from the news release by STRS on 4/15/11.) STATUS OF PENSION LEGISLATION - STILL AWAITING SUBSTITUTE BILLS; REEMPLOYED RETIREES ADDRESSED IN NEW SEPARATE BILL On Feb. 1, House Bill 69, sponsored by Rep. Lynn Wachtmann, and Senate Bill 3, sponsored by Sen. Keith Faber, were introduced as the vehicles to carry the changes being proposed by the five statewide public pension plans (including STRS Ohio) to strengthen the solvency of their respective pension funds. H.B. 69 was assigned to the Health and Aging Subcommittee on Retirement and Pensions, which is chaired by Rep. Kirk Schuring. The committee held a number of hearings; however, the last four scheduled meetings were cancelled in late March and early April. Schuring, Rep. Lynn Wachtmann and Sen. Keith Faber are working on language for a substitute pension reform bill. STRS Ohio will let members know when this revised bill is presented. Other recent events at the Statehouse include the following: ...

(The text below is reprinted from the news release by STRS on 3/18/11.) PENSION PLANS DISCUSSED IN HOUSE AND SENATE COMMITTEES AND NOW INCLUDED IN PROPOSED STATE BUDGET Legislation based on plans forwarded to the General Assembly from the five statewide public pension plans has been the focus of hearings in a subcommittee in the Ohio House of Representatives. House Bill 69, sponsored by Rep. Lynn Wachtmann, was assigned to the Health and Aging Subcommittee on Retirement and Pensions after its first hearing. Wachtmann, who is chair of the House Health and Aging Committee, sent the legislation to the subcommittee that is pursuing an aggressive hearing schedule under the direction of Chair Kirk Schuring. To date, all five systems have presented testimony on the board-approved changes to their respective plans. In the case of STRS Ohio, the language in the current bill actually refers to the plan adopted by the Retirement Board in fall 2009. However, language is expected to be amende...