(The text below is reprinted from the
news release by STRS on 04/19/2013.)
Ohio law requires the retirement systems to prepare a report when the amortization period for the unfunded pension liability exceeds 30 years. In March, STRS Ohio sent a letter to the Ohio Retirement Study Council (ORSC) to outline the fund’s plan to reach the state’s required 30-year amortization period. The letter noted that the passage of Substitute Senate Bill 342 significantly improved STRS Ohio’s funding and that the system’s actuarial consultant projects that if assumptions are met in each of the next two years, STRS Ohio should be back on a 30-year amortization schedule.
Operating Budget for Fiscal Year 2014 Reflects Slight
Decrease
The Finance Department presented proposed system budgets for the 2014
fiscal year (July 1, 2013–June 30, 2014) during the April meeting of the State
Teachers Retirement Board. The proposed operating budget totals $90,504,600, a
slight decrease from the current year’s budget. The proposed head count of 585
full-time equivalent associates reflects an increase of six positions for the
coming year. The budget provides for the continued implementation of pension
reform changes, refinements to the Defined Contribution and Combined Plans, and
continued development of Health Care Fund options. The proposed capital budget
for fiscal year 2014 totals $1,684,300. The Retirement Board will be asked to
approve the budgets at its June meeting.
Retirements Approved
The Retirement Board approved 191 active members and 118 inactive
members for retirement.
Other STRS Ohio News
STRS Ohio Presents 30-Year Funding
Report to the Ohio Retirement Study CouncilOhio law requires the retirement systems to prepare a report when the amortization period for the unfunded pension liability exceeds 30 years. In March, STRS Ohio sent a letter to the Ohio Retirement Study Council (ORSC) to outline the fund’s plan to reach the state’s required 30-year amortization period. The letter noted that the passage of Substitute Senate Bill 342 significantly improved STRS Ohio’s funding and that the system’s actuarial consultant projects that if assumptions are met in each of the next two years, STRS Ohio should be back on a 30-year amortization schedule.
During the April 9 ORSC meeting, Council member Rep. Kirk Schuring
(R-Canton) acknowledged STRS Ohio for its report and for the work the system
did to craft a pension reform plan to improve the financial health of the
retirement system. Rep. Schuring said it was noteworthy that STRS Ohio adjusted
its actuarial assumptions during the process and made the sacrifices necessary
to help strengthen the health of the fund. STRS Ohio later responded to a
request from ORSC Chair Rep. Lynn Wachtmann (R-Napoleon) to provide information
about the system’s compliance with the 30-year requirement during the past
decade.
CEM Benchmarking Reports
Improvements in Cost, Service for 2012
STRS Ohio received the CEM Pension Administration Benchmarking report
for fiscal year 2012 showing STRS Ohio had the second highest service level
score among its peer group of 14 systems and the third highest score among the
total universe of 51 plans. The Call Center, One-on-One Counseling and
Purchasable Service Estimate activities ranked first among all participating
systems. STRS Ohio is on track to improve this service score again next year as
projections are added to the annual statements, surveys are implemented for new
pension inceptions, and tax withholding and bank changes are added to the
Member Self-Service area of the website.
The report also reflected a reduction in administrative cost per member.
STRS Ohio’s cost per member and annuitant is now below the average of all
benchmark participants, but is higher than its peer group. Since 2006, STRS
Ohio has reduced the per member and annuitant cost of administering the pension
benefits, while the costs for the peer group continue to increase.