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March Board News

(The text below is reprinted from the news release by STRS on 3/20/15.)

Hayden Unopposed for Retirement Board Election
In 2011, members elected Taiyia Hayden to a contributing member seat on the Retirement Board for a term that ends Aug. 31, 2015. Ms. Hayden was the only STRS Ohio contributing member to file enough completed petitions for the 2015 election for this seat by the deadline of Feb. 27, 2015. Since she is unopposed, in accordance with Ohio statute, no election needs to be held and she will continue in this seat through Aug. 31, 2019. Hayden is an elementary school teacher for Columbus Public Schools. Board members receive no compensation other than reimbursement for necessary expenses.

Board Committee Discusses Further Development of Funding Policy
The State Teachers Retirement Board’s Ad Hoc Committee to Study Funding Policy met in March to discuss potential improvements to the board’s funding policy. STRS Ohio staff shared with the board a presentation on plan volatility based on the pension fund’s current asset mix and the possible implication that volatility might have on the future funded status of the plan. To measure the financial status of the pension fund, the board uses metrics that include the funded ratio (the ratio of assets compared to the system’s liabilities) and the funding period (the amount of time the fund projects it will need to reach 100% funded status). The committee may consider making a recommendation to add a probability measure to this list of metrics.

Funding policy discussions are expected to continue in the months ahead. These studies and discussions are a responsible part of the board’s fiduciary duties to help ensure a financially strong STRS Ohio that members will continue to rely upon for sustainable and secure benefits.

Retirements Approved
The Retirement Board approved 187 active members and 87 inactive members for service retirement benefits.

Other STRS Ohio News

STRS Ohio to Close New Enrollment for Medical Mutual Plus Plan Effective June 1
In 2013, as part of the Retirement Board’s health care strategic framework, the board approved consolidating the Medical Mutual Plus Plan into the Basic Plan effective Jan. 1, 2016. To begin this transition, STRS Ohio is closing the Medical Mutual PPO Plus Plan to new enrollments effectiveJune 1, 2015. The early closure to new enrollments should reduce the chance of confusing enrollees who might otherwise enroll in the Plus Plan only to see it close a few months later.

Existing Plus Plan enrollees may remain in the plan until Dec. 31, 2015; however, benefit recipients who enroll any new dependents after May 31, 2015, will need to transfer to the Medical Mutual PPO Basic Plan or a regional plan, where available.

STRS Ohio Ranks as the 19th Largest U.S. Fund
STRS Ohio takes part in an annual survey by Pensions & Investments magazine that ranks retirement funds by size. The rankings cover public and private funds and were reported in February. Results are based on asset allocations and market values as of Sept. 30, 2014. Highlights from the findings include:
  • STRS Ohio ranked as the 19th largest U.S. fund overall.
  • STRS Ohio ranked as the eighth largest U.S. fund based on the amount of internally managed assets.

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