Kevin Kroskey's Ohio Faculty Advisor

(The text below is reprinted from the news release by STRS on 8/17/12.) STRS Ohio Presents Pension Reform Proposal to House Subcommittee At the August meeting of the State Teachers Retirement Board, executive director Michael Nehf provided an update on the status of pension legislation that is pending before the Ohio House of Representatives. Nehf told the board that the House Health and Aging Subcommittee on Retirement and Pensions held several hearings on pension bills during the summer. On Aug. 8, Nehf presented STRS Ohio's pension reform proposal to the subcommittee and responded to questions from its members Nehf told the subcommittee that STRS Ohio's changes are necessary to preserve the pension fund and acknowledged that the board-approved plan has the support of the Healthcare and Pension Advocates for STRS — a coalition that is comprised of groups of active members, retirees and employers. The STRS Ohio plan increases age and service requirements for retir...

(FROM the STRS Ohio eUPDATE) On Aug. 8, STRS Ohio executive director Mike Nehf told members of the House Health and Aging Subcommittee on Retirement and Pensions that the pension reform plan unanimously passed by the State Teachers Retirement Board in April is necessary to preserve the pension fund and that the board's action was taken to uphold its fiduciary duty to the members and retirees of the system. The House subcommittee has been holding hearings on pension legislation since mid-July and expects to take action on bills for all five Ohio retirement systems in September.   Mr. Nehf's presentation   acknowledged that STRS Ohio's pension proposal is supported by the Healthcare and Pension Advocates for STRS — a coalition that is comprised of groups of active members, retirees and employers.   The STRS Ohio plan   increases age and service requirements for retirement; calculates pensions on a lower, fixed formula; increases the period for determining fin...

(FROM the STRS Ohio eUPDATE) At the July 11 Ohio Retirement Study Council (ORSC) meeting, William "Flick" Fornia presented the results of the Pension Trustee Advisors (PTA) study of the pension plan design changes approved by the boards of Ohio's five statewide retirement systems. The PTA report recommended adoption of the systems' plans, but suggested that the retirement systems' boards be given authority to make further benefit changes in the future, if necessary, to remain within a 30-year funding period. The report also supported the continuation of defined benefit plans for Ohio's public employees, noting the efficiency and low costs of these plans. While some news outlets focused on portions of the report that point to the possible need for additional plan adjustments, PTA encouraged legislative approval of the plans because the boards' recommended changes will put the systems in a much more solid financial position. The PTA report called STRS...

(The text below is reprinted from the news release by STRS on 6/15/12.) Retirement Board Chair, Vice Chair Named During its June meeting, the State Teachers Retirement Board elected Dale Price (Toledo Public Schools, Lucas County) as its vice chair for the coming year. According to Board Policies, Mark Hill (Worthington City Schools, Franklin County), who is currently serving as vice chair, automatically moves into the position of chair. Hill and Price will assume their new responsibilities on Sept. 1, 2012. Retirement Board Accepts the Annual Investment Plan The Retirement Board voted to accept the Investment Plan for fiscal year 2013 (July 1, 2012 – June 30, 2013). The plan details staff's investment strategy for each asset class comprising the system's investment fund. STRS Ohio staff expects only modest growth in the capital markets during fiscal year 2013. With the threat of global debt problems having a harmful effect on the markets, STRS Ohio will c...

(The text below is reprinted from the news release by STRS on 5/18/12.) Ohio Senate Passes Pension Reform Legislation; STRS Ohio Hopeful That House of Representatives Will Take Action Executive Director Michael Nehf reported at the May Retirement Board meeting that the Ohio Senate passed STRS Ohio’s long-awaited pension reform bill (Sub. Senate Bill 342) on May 16 by a 31–2 vote, paving the way for the House to hopefully take similar action yet this year. Retirement Board Chair Jim McGreevy expressed appreciation to the Senate and to the bill’s co-sponsors, Senate President Tom Niehaus (R-New Richmond) and Senate Minority Leader Eric Kearney (D-Cincinnati) for taking action on pension reform. McGreevy also complimented STRS Ohio stakeholders for their work in support of the bill. On May 8, the co-sponsors introduced four pension reform bills that were assigned to the Senate Insurance, Commerce and Labor Committee. In testimony that afternoon, Nehf told Committee members that the ...

(The text below is reprinted from the news release by STRS on 4/20/12.) Retirement Board Amends Plan to Strengthen the Financial Condition of the Pension Fund; Pension Design and Contribution Changes Approved The State Teachers Retirement Board voted to amend its plan to further strengthen the financial condition of the pension fund at its April meeting and hopes to see legislative action on its pension reform plan in the coming months. The board’s plan is projected to save about $13.3 billion in accrued liabilities, maintains a 1% employer contribution to STRS Ohio’s health care fund and does not include any increase in employer contributions. The board vote followed several months of discussion and study — including conducting an asset-liability study and a three-year actuarial experience review. All changes contained in the plan require legislative action by the Ohio General Assembly and the governor to be implemented. Components of the plan include: ·    ...

(The text below is reprinted from the news release by STRS on 3/26/12.) Retirement Board Reviews Pension Reform Plan Design Changes As previously reported in   Board News , the pension reform proposal passed by the State Teachers Retirement Board in January 2011 no longer meets the 30-year funding period required by the Ohio Legislature. At its March 22, 2012, meeting, the Retirement Board discussed various revisions to the current proposal, aimed at reaching the 30-year amortization goal. Earlier this month STRS Ohio staff presented several scenarios to reduce the system's liabilities and funding period. The Retirement Board asked for further study — including a potential cap on the cost-of-living adjustment (COLA) that is paid in retirement, and/or a one-year COLA suspension. Staff was also asked to consider ways to smooth the transition to new retirement eligibility rules that will include a longer teaching career and an age requirement to qualify for retirement. All of t...