June Board News
STRS Ohio Investment Returns Rank Near the Top
At the June Investment Committee meeting, Meketa, the State Teachers Retirement Board’s investment consultant, shared the results of its quarterly report on STRS Ohio’s investment performance for the period ending March 31, 2004. Meketa reported that:
- Net returns over five-, 10- and 20-years all exceeded the actuarial discount rate and the total fund benchmark.
- For all long-term periods, STRS Ohio investment performance was in the top 10% relative to Meketa’s universe of public plans.
- STRS Ohio achieved top percentile returns while exhibiting less risk than the median of Meketa’s public defined benefit plan universe.
Staff Presents Fiscal 2025 Investment Plan
STRS Ohio staff presented the Fiscal 2025 Investment Plan to the Investment Committee. The plan details the investment strategy for each asset class in the system’s portfolio. To create the plan, investment staff members research the economic outlook for every asset class, consider how to manage risk and take the board’s strategic initiatives into account. External investment consultants Callan LLC and Meketa expressed their support for the plan. The 2025 plan will be available on the STRS Ohio website starting July 1 — click on “Annual Reports” in the Publications section to access the document.
Board Adopts Fiscal 2025 Budgets
The Retirement Board voted to adopt the system’s operating and capital budgets for fiscal year 2025 (July 1, 2024–June 30, 2025). The approved operating budget totals $118.3 million, a 2.3% increase over the current fiscal year. The approved capital budget totals $8.5 million. As required by law, STRS Ohio staff submitted these budgets to the Ohio Retirement Study Council in April.
Executive Director’s Report Highlights System News, Ohio Retirement Study Council Special Committee
Acting Executive Director Lynn Hoover shared several items of interest with the Retirement Board in her monthly report. Included in the report were the following items:
STRS Ohio staff built a timeline for the upcoming actuarial-related matters that will come before the Retirement Board. The timeline starts with a presentation from Cheiron at the August board meeting to seek input from the board about benefit changes to be considered for a sustainable benefit plan analysis.
At the June 13 meeting of the Ohio Retirement Study Council (ORSC), the sole agenda item was a presentation about board governance and fiduciary duty. After the presentation, the council chair announced the creation of an ORSC STRS Ohio subcommittee made up of four members of the Council. More information will be shared as it becomes available.
Performance-Based Incentive Program Discussion to Continue at Next Meeting
Lynn Hoover provided a presentation to the Investment Committee and the full Retirement Board about the Performance-Based Incentive (PBI) Program. The board did not approve the PBI Program for fiscal year 2025 but indicated the program will be discussed further at a future board meeting.
Board Leadership Election Policy Revised
The board approved a change to its policy regarding chair and vice chair elections. An election will now be held every August to choose who will hold those two leadership positions. In the past, board policy stated that a new vice chair would be elected at the June board meeting who would then move up to the chair position in September of the next calendar year.
Retirements Approved
The Retirement Board approved 924 active members and 77 inactive members for service retirement benefits.