Kevin Kroskey's Ohio Faculty Advisor

(The text below is reprinted from the news release by STRS)   Board Subcommittee Continues Discussion on Funding Policy During the November meeting of the State Teachers Retirement Board’s Ad Hoc Committee to Study Funding Policy, committee members continued to discuss the board’s funding policy and reviewed a proposed scorecard that would measure and summarize various financial data. These measurements could then be used to determine the financial health of the Defined Benefit Plan. The key metrics discussed included the plan’s funded ratio (ratio of plan assets compared to accrued liabilities), funding period (the amount of time the fund projects it will need to reach 100% funded status), plan status forecast (the probability of significant deterioration of plan funding in the 10 years after the measurement date) and economic conditions (comparing recent investment returns in context of long-term expected returns). Segal Consulting, the board's actuarial consultant, indic

(The text below is reprinted from the news release by STRS)   Annual Actuarial Valuation Shows Improvement in STRS Ohio's Funding Period At its October meeting, the State Teachers Retirement Board received a report of the annual pension valuation results from its actuarial consultant, Segal Consulting. The report provides a “snapshot” of the financial position of the retirement fund as of July 1, 2015. This year’s valuation report shows the funding period for the pension fund — that’s the amount of time needed to pay off any unfunded liability — decreased to 28.4 years from 29.5 years and the funded ratio remained steady at 69.3%.   Earlier this year, the board approved a 30-year closed amortization period — effectively targeting a date when the unfunded actuarial accrued liability (UAAL) will be paid off and the pension fund will be fully funded. The steady improvement in the funding period this year keeps the system on track to meet its goal. The UAAL represents the di

(The text below is reprinted from the news release by STRS)   Board Reviews Key Data Trends — Summer 2015 was Peak for Retirements During the September meeting of the State Teachers Retirement Board, STRS Ohio staff presented developing data trends and shared that the 2015 retirement season was the retirement system’s busiest ever. The number of new benefit recipients slightly surpassed the previous high from 2013. The total number of retirements in 2015 was higher and earlier than expected and means STRS Ohio will pay retirement benefits longer than expected. The board’s actuary, Segal Consulting, will determine the impact of the 2015 retirement experience and include it in the pension valuation report that will be presented at next month’s board meeting.   STRS Ohio processed the increased volume of retirements without adding staff — thanks in part to a web-based retirement application that has improved the accuracy of information the system received from retiring members.

(The text below is reprinted from the news release by STRS) STRS Ohio's Total Fund Return for Fiscal Year 2015 Ranks High Among Public Funds During the August meeting of the State Teachers Retirement Board, Investment Department staff reported that STRS Ohio’s total fund return for the year ending June 30, 2015, was +5.45%. The board’s investment consultant, Callan Associates, reported that STRS Ohio’s one-year return ranked in the top 3% of its public fund universe. Pensions & Investments, a national publication on money management, recently published a list of public pension fund investment returns for the one-year period ending June 30, 2015, with STRS Ohio outpacing other top funds including CalSTRS (4.8%), Oregon Public Employees (4.3%) and Illinois State Board of Investment (4.3%). STRS Ohio’s fiscal year 2015 return was consistent with staff’s annual plan forecast of moderate, positive returns. The total fund return beat its performance benchmark by 0.37%, meaning the

(The text below is reprinted from the news release by STRS on 6/19/15.)   Retirement Board Chair, Vice Chair Named During its June meeting, the State Teachers Retirement Board elected retired teacher member Robert Stein as its vice chair for the coming year. According to Board Policies, contributing teacher member Carol Correthers (Lorain City Schools, Lorain County), who is currently serving as vice chair, automatically moves into the position of chair. Correthers and Stein will assume their new responsibilities on Sept. 1, 2015. Board members receive no compensation for serving on the board other than reimbursement for necessary expenses.   Board Amends Prior Action on Mitigating Rate The mitigating rate, established by law, is a portion of the employer contribution that is used by the retirement system to offset the negative impact of participation in a defined contribution plan. At its April 2015 meeting, the Retirement Board approved a 1% increase in the mitigating rate