Kevin Kroskey's Ohio Faculty Advisor

(The text below is reprinted from the news release by STRS on 1/21/11.) RETIREMENT BOARD WILL CONTINUE DISCUSSION ON PENSION PLAN CHANGES AT ANNUAL RETREAT During its special meeting on Jan. 21, 2011, the State Teachers Retirement Board continued its discussion about potential changes to its pension plan design to strengthen the financial condition of the pension fund. Feedback from the Statehouse had indicated that any final pension legislation for STRS Ohio should not include an increase in employer contributions. Further, the plan must also result in a funding period for the pension fund that does not exceed 30 years. The plan adopted by the board in October 2010 brought the funding period down to 35.1 years with the inclusion of an additional 2.5% in employer contributions - and to only 46.1 years without the additional employer contributions. The board reopened its discussion about possible pension plan changes at its regularly scheduled meeting on Jan. 13; then continued th...

The state's fiscal issues are being faced and the pensions for state employees will continue to be put under a microscope. I wouldn't be so foolish to think this is going to be a one-time phenomenon but will continually be an issue in the coming years. Take a hard look at your lump sum options and consider these within the context of your financial planning. Kevin Kroskey, CFP, MBA (The text below is reprinted from the news release by STRS on 1/14/11.) RETIREMENT BOARD REOPENS DISCUSSION ON PENSION PLAN CHANGES In September 2009, the State Teachers Retirement Board approved a set of changes to its pension plan design to strengthen the financial condition of the pension fund. Economic and demographic factors, coupled with the effects of the "Great Recession," had caused a significant reduction in available funds to pay off accrued pension liabilities over time. As a result, the funding period (i.e., the number of years required to pay off the pension fund's ...