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Showing posts from March, 2017

STRS Ohio March Board News

Solvency Period for Health Care Fund Drops to 15 Years; Board Exploring Options to Preserve Plan At the March meeting of the State Teachers Retirement Board, Paul Snyder, deputy executive director — Finance and chief financial officer, presented results of Segal Consulting’s annual actuarial valuation of the Health Care Fund. The report shows the funded ratio for the Health Care Fund dropped to 63% from 74% last year. This means STRS Ohio has 63 cents on hand for every dollar needed to continue the current plan indefinitely. The valuation projects the Health Care Fund to remain solvent until 2031, a decrease of four years from last year’s valuation — and a decrease of 33 years from the 2014 valuation. The projected 15-year solvency period is an estimate ­— in actuarial terms, there is a 50% confidence level that the Health Care Fund has at least 15 years of solvency. Depending on the strength of financial markets, the amount of health care claims and whether additional funding is av

STRS Ohio February Board News

Board Reviews Recommendations From Experience Study, Weighs Impact on Financial Condition   At the February meeting of the State Teachers Retirement Board, staff summarized the results of the experience study recently completed by the board’s actuarial consultant, Segal Consulting. An experience study is completed every five years to help the system make accurate economic and demographic assumptions used to measure the financial condition of the pension fund. The economic assumptions include the rates of inflation, salary increases, overall payroll growth and the investment return on assets. Demographic assumptions include the number of retirements, disability inceptions, withdrawals from the system and deaths among active members and benefit recipients. The results of the study showed that STRS Ohio should consider adjustments in several key areas that will have an overall negative impact on the system’s funding status. Segal’s recommendations included: lowering STRS Ohio’s inv