Skip to main content

STRS Ohio September Board News

Board Reviews Health Care Subsidy Options for 2019 and Beyond

During the September meeting of the State Teachers Retirement Board, the board continued its discussion on the solvency of the Health Care Fund and how to provide a meaningful subsidy for plan enrollees. The Health Care Fund has a balance in excess of $3 billion and is currently estimated to remain solvent through 2034. Solvency is largely driven by the subsidy provided to each enrollee — both the initial subsidy level and the growth of the subsidy. The STRS Ohio Health Care Program is currently funded through premiums charged to plan enrollees, government reimbursements and investment earnings on the fund. STRS Ohio no longer allocates a portion of employer contributions to the Health Care Fund, as all of the employer contributions are needed to fund pensions.

Finding solutions for health care funding is challenging for several reasons. The board has already implemented many cost-saving options available through plan design changes, and health care trend projections provided by Segal Consulting show expected cost increases (trend rate) to continue to grow over the next decade. With no dedicated source of income for the Health Care Fund, the board has been reviewing premium subsidy strategies that include a cap to extend the life of the fund. Most of the cost models reviewed are projected to extend the solvency period for the Health Care Fund to 30 years or more. Under these cost models, long-term costs are expected to grow for all enrollees. The cost models under consideration maintain a higher premium subsidy percentage for Medicare enrollees than for non-Medicare enrollees.

The board will continue its discussion on the health care program at its October meeting. The changes being discussed will not impact the 2018 plan design or subsidy level.

Retirements Approved

The Retirement Board approved 349 active members and 93 inactive members for service retirement benefits.

Other STRS Ohio News

STRS Ohio to Distribute Annual Statement of Account to Members; Paperless Option Grows in Popularity

STRS Ohio is preparing Annual Statements for distribution to members in late September. Members have shown a growing interest in receiving their Annual Statement online through their password-protected Online Personal Account. More than 52,000 members have now opted to view their Annual Statement online rather than receiving a printed Annual Statement through the mail.
Actuary File Provides Interesting Facts About STRS Ohio Members and Retiree Longevity

STRS Ohio completed its actuary file and sent it to Segal Consulting for the fiscal 2017 valuation. This year’s file continues to shed light on STRS Ohio retiree longevity. As of June 30, 2017, STRS Ohio had 190 benefit recipients who are age 100 or older — an increase from 171 last year. The 190 individuals include 172 women and 18 men. Most of these centenarians are service retirees; however, 55 are beneficiaries of retirees or survivors of an active member who died, and one is a disability recipient. The oldest STRS Ohio retiree is now 107 years old, having retired in 1973. She began teaching in 1930.

The retiree who has been receiving benefits the longest is a 104-year-old recipient who retired in 1969 at age 56 after 35 years of service. STRS Ohio has been paying this retired educator for 48 years.

Active members have their own type of longevity in the classroom, with 12 members having 50 or more years of service and 121 members exceeding 40 years of service in the classroom.

(The text above is reprinted from the news release by STRS).

Popular posts from this blog

STRS Ohio October Board News

Actuarial Valuation Shows COLA Change, Investment Returns Lead to Funding Gains During the October meeting of the State Teachers Retirement Board, actuarial consultant Segal Consulting presented key findings from its July 1, 2017, annual pension valuation report. This report provides a detailed look at the financial health of the pension fund. The most common ways to express the system’s financial condition are through the funded ratio and the funding period. This year’s valuation report shows the funded ratio — the value of assets compared to actuarial accrued liabilities (benefits earned by members of the system) — improved to 75.1% from 69.6% last year. The funding period — the amount of time needed to pay off the system’s unfunded liability under current assumptions and benefit levels — also improved, decreasing to 18.4 years from 26.6 last year. Segal shared that without the board’s action to reduce cost-of-living increases granted on or after July 1, 2017, to 0%, STRS Ohio

STRS Ohio December Board News

CliftonLarsonAllen Completes Fiscal 2017 Annual Financial Statement Audit and Issues Clean Opinion At the December meeting of the State Teachers Retirement Board, CliftonLarsonAllen reported the results of its audit of the STRS Ohio financial statements for the fiscal year ending June 30, 2017. The report showed that the retirement system’s financial statements were fairly stated in accordance with generally accepted accounting principles and that no material weaknesses in internal controls or instances of noncompliance were found. As a result, STRS Ohio received an unmodified opinion — also known as a “clean” opinion — which is the highest level of opinion that an organization can achieve. STRS Ohio’s financial statements are included in the 2017 Comprehensive Annual Financial Report , which will be posted on the system’s website by Dec. 29, 2017. In addition to the financial statements, the report includes investment, actuarial and statistical information about STRS Ohio. This repor

STRS Ohio June Board News

Retirement Board Approves Health Care Premiums For 2018; Approximately 80% of Enrollees Will See No Premium Increase At the June meeting of the State Teachers Retirement Board, the board approved 2018 premiums for all plans offered through the STRS Ohio Health Care Program. A complete list of these premiums is posted on the system’s website , or can be obtained by calling STRS Ohio’s Member Services Center toll-free at 888‑227‑7877. Additional information about the 2018 Health Care Program will be provided in upcoming newsletters and on the STRS Ohio website. In late October, all plan enrollees will receive personalized health care plan information in preparation for the fall open-enrollment period that extends from Nov. 1‑21, 2017. When determining premiums, the Retirement Board and STRS Ohio staff consider the claims experience of plan enrollees, annual health care cost trend rates and administrative expenses for the program. Factors that proved favorable for 2018 rate setti