Kevin Kroskey's Ohio Faculty Advisor

Study Indicates Need for Benefit Plan Design Changes to Meet State Funding Requirements   During its 2017 education and planning meeting, the State Teachers Retirement Board received the results of actuarial consultant Segal Consulting’s five-year experience study. The study compares the system’s economic and demographic assumptions to STRS Ohio’s actual experience from the past five years. The study results led Segal to recommend several changes to STRS Ohio’s assumptions. These changes are projected to significantly increase STRS Ohio’s total accrued liabilities and extend STRS Ohio’s funding period well beyond the state of Ohio’s 30-year funding requirement. The pension fund would then be required to present a plan to reduce its funding period to 30 years or less.   The experience review measures economic assumptions (inflation, salary increases, overall payroll growth and investment return on assets) and demographic assumptions (retirements, disability inceptions,...