Kevin Kroskey's Ohio Faculty Advisor

(The text below is reprinted from the news release by STRS)   Myers Wins Board Seat Contributing teacher member Tim Myers was reelected to the State Teachers Retirement Board in the 2016 election. The term for this seat begins Sept. 1, 2016, and ends on Aug. 31 2020.   Board Considers Updates to Strategic Goals Document During the May meeting of the State Teachers Retirement Board, STRS Ohio executive director Michael Nehf reviewed changes that staff is recommending to STRS Ohio’s Strategic Goals document. The Strategic Goals document provides an overview of the retirement system’s goals, along with objectives and initiatives developed to meet the approved strategic goals.   Staff’s recommended changes include adding a new strategic goal to address STRS Ohio’s health care funding challenges. Proposed objectives under this new goal include: Determine the components that deliver a plan that represents a good value; Evaluate the impact of additional he...

(The text below is reprinted from the news release by STRS)   Board Approves Health Care Program Changes for 2017; Long-Term Health Care Funding Discussions to Continue At its April meeting, the State Teachers Retirement Board approved changes for the 2017 health care program that are designed to help reduce STRS Ohio’s long-term plan costs and extend the solvency of the health care fund. Due to increasing claims costs and the lack of a dedicated source of funding, STRS Ohio is facing significant health care funding challenges. The approved changes do not provide a long-term funding solution for the health care fund. The changes are projected to extend the solvency of the health care fund by two to three years beyond the projected 15-year solvency period reported last month in Segal Consulting’s annual actuarial valuation.   The board is exploring long-term funding solutions for the health care program that would allow STRS Ohio to continue a health care program that...

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

(The text below is reprinted from the news release by STRS)   Staff Presents Considerations for 2017 STRS Ohio Health Care Program Changes; Board Discussion Expected to Continue in March During the February meeting of the State Teachers Retirement Board, STRS Ohio staff presented a number of items for the board to evaluate as it considers potential health care program changes for 2017. The presentation follows discussion that took place at the board’s annual retreat in January regarding the funding challenges facing the health care program.   Staff’s primary objective is to consider plan adjustments that remain consistent and competitive with the health care marketplace. The items submitted for consideration fall into three general categories: plan design, plan eligibility and plan subsidy. The board did not take action on any of the proposed changes and is expected to continue to discuss the items at its March meeting.   Plan design changes for consideration...

(The text below is reprinted from the news release by STRS)   Independent Report Shows STRS Ohio Has Lowest Investment Costs in Peer Group; Internal Investment Strategy Saves Millions of Dollars At the December meeting of the State Teachers Retirement Board, CEM Benchmarking, a leading global research company, presented the results of its 2014 investment benchmarking study. This year’s report compared investment data for the five-year period ending Dec. 31, 2014, from 17 large U.S. public fund sponsors. Results of the study showed that STRS Ohio’s total investment costs were the lowest among the peer group, primarily due to STRS Ohio’s greater use of internal investment managers. The report stated that STRS Ohio saved about $103 million in 2014 by using internal investment managers for about three-quarters of the system’s assets. The savings is based on the peer group’s median external management costs. The report also provided performance data and showed that STRS Ohio’s five...

(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 t...