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, indicated the metrics noted above are necessary, sufficient, reasonable and appropriate. The board will continue to discuss its funding policy at its annual retreat in January 2016, and will evaluate under what conditions it might consider potential changes to plan design if and when appropriate. These discussions are a part of the board’s commitment to help ensure a financially strong STRS Ohio.
The Retirement Board approved 381 active members and 74 inactive members for service retirement benefits.
Other STRS Ohio News
Retirement Board Election Process Begins this Month
On Nov. 6, STRS Ohio sent notices to all reporting employers and other interested parties about the upcoming Retirement Board election for one contributing member seat. In addition, election information is included in STRS Ohio’s fall newsletter and is posted on the STRS Ohio website. Individuals interested in running for a seat on the State Teachers Retirement Board can request petitions from STRS Ohio. The deadline for returning petitions is Feb. 26, 2016.
Center for Public Integrity Scores Ohio a “D+” on Integrity; “A” in Pension Fund Management
Most of Ohio’s major daily newspapers — and many publications across the country — covered the latest report issued by the Center for Public Integrity that rated all 50 states on their laws and practices to promote government transparency and stop corruption. The report gave Ohio a D+ overall — the sixth highest score in the nation. Ohio’s top grade was in the category of State Pension Fund Management, where it was one of only three states to earn an A. STRS Ohio and the other Ohio funds answered a series of questions earlier this year that were used to develop the ranking. The questions focused on system controls to prevent conflicts of interest, to support transparency and ease of access to disclosures and pension fund documents.