(The text below is reprinted from the news
release by STRS on 08/16/2013.)
STRS Ohio Posts
+13.7% Total Fund Return in Fiscal Year 2013
At the August meeting of the State Teachers Retirement Board,
Investment Department staff reported that the total fund return for the year
ending June 30, 2013, was +13.7%, and the market value of assets at fiscal year
end was $68.0 billion. The strong return for fiscal year 2013 exceeded the
fund’s assumed actuarial return of 7.75%.
All asset classes beat their benchmarks during the fiscal year
except for domestic equities. The total fund return trailed the total fund
benchmark for only the second time in the past 11 years.
STRS
Ohio’s 2014 Investment Plan calls for only moderate growth in the capital markets in
fiscal year 2014.
Fiscal 2013
0perating Expenses Total $4.7 Million Under Budget
Final figures for fiscal year 2013 show that STRS Ohio’s total
operating expenditures were approximately $4.7 million less than budgeted for
the year. Less than expected expenditures for salaries, communications,
professional and technical services, and utilities accounted for much of the
savings. Each month, STRS Ohio posts approved administrative expenses on its website.
Retirements Approved
The Retirement Board approved 2,992 active members and 187
inactive members for retirement.
Other STRS Ohio News
Summer Retirement Applications Increase Over 2012
Summer Service
Retirement Application totals increased by 878 applications when compared
to the same time last year. June retirement dates continue to outpace July
retirement dates this year. Through July, STRS Ohio received 6,377 applications
for June, July and August retirement dates compared to 5,499 at the end of July
2012.
Pension Valuation Preparation Begins
Preparation for the July 1, 2013, pension valuation has begun. For
this fiscal year’s valuation, STRS Ohio will create new tools to help ensure
the system provides quality data for its actuarial consultants. Since this will
be the Segal Company’s first pension valuation of STRS Ohio, former processes
and formats are being reviewed. Member and benefit recipient data files are
expected to be provided to Segal by Labor Day weekend.
Projections to Aid in Developing Funding Policy
To benchmark STRS Ohio’s funding progress, Segal is preparing a
year-by-year projection of the unfunded liability, funded ratio and
amortization period over the next 10 to 15 years using the current economic and
demographic assumptions. Actual valuation results in future years can then be
compared to the forecast to determine whether funding is progressing as
expected. Although individual years may be distorted by gains or losses,
tracking projected experience to actual results over time will help identify
whether STRS Ohio’s funding policy is working.