October Board News

Board Approves Supplemental Payment for Benefit Recipients

The State Teachers Retirement Board approved a one-time supplemental benefit payment for eligible recipients who started receiving benefits in or prior to January 2024. The supplemental benefit will be paid in December. Due to strong fiscal year 2024 investment returns, the board elected to use $306 million of the investment earnings for the payment. Importantly, while the board elected to pay a one-time supplemental benefit this year, it may not be able to grant one in future years based on investment returns and other board decisions. The board has limited authority to grant one-time payments per Ohio Revised Code. More information will be available on the STRS Ohio website in the next week.

Board Adopts New Funding Policy Focused on Sustainable Benefit Changes

The board voted to adopt a new funding policy with the stated goal of safeguarding members’ pension benefits in the long term. The Retirement Board’s pension funding policy includes objectives for pension funding and lays out clear criteria for making and monitoring decisions regarding changes to funding and benefits. Included in this new policy is the board’s Sustainable Benefit Plan, or SBP, a framework used to determine if there are sufficient funds in a given year to make benefit changes and how to allocate those funds.

Reports Show Fiscal 2024 Pension and Health Care Valuation Results

Cheiron, STRS Ohio’s actuarial consultant, shared the initial results of its fiscal 2024 pension valuation report — an update on the financial condition of the pension fund. The report from Cheiron showed an improvement in the funded status of the plan, due primarily to fiscal 2024 investment returns. STRS Ohio’s funded ratio — that is, the asset value compared to liabilities — increased to 82.8% from 81.3% as measured at actuarial value. The funding period is a measure of the time needed to reach a funded ratio of 100%. This measure also improved, decreasing to 10.1 years from 11.2 years in last year’s report.

Cheiron also shared the results of its fiscal 2024 health care valuation report. The funded ratio remains in a strong position at 158.0%, down from 168.5%. Currently, there are no member or employer contributions used to fund the health care plan.

Redesigned Member Website Is Now Live

The STRS Ohio website was recently launched with a new look and structure. The site was developed and designed from the ground up by STRS Ohio staff using the latest web best practices. Content has been organized and simplified, and the result is a streamlined site that members and stakeholders can easily navigate.

Board Selects New Governance Consultant

The Retirement Board voted to pursue a contract with Global Governance Advisors (GGA) as the board’s governance consultant. GGA has extensive experience in advising public pension boards and will assist the board with recommendations related to board policies, strategic planning, education and enterprise risk management.

New Board Members Welcomed

The Retirement Board welcomed two new members to their first meeting. Jonathan A. Allison was appointed by the governor, and his term extends through Sept. 27, 2028. Carolyn Everidge-Frey will serve as the designee of the director of the Department of Education and Workforce.

2025 Retirement Board Election Notices to Mail

In early November, STRS Ohio will mail notices for the 2025 Retirement Board to all employers to inform members about the upcoming election. The 2025 election is for two contributing member seats currently held by Carol Correthers and Michael Harkness. Those eligible to run for these seats include members presently contributing to STRS Ohio and those who have contributions on deposit with STRS Ohio — including members receiving disability benefits.

In addition, the retired member seat currently held by Rudy Fichtenbaum is up for election in 2025. Those eligible to run for the retired member seat include those who are current service retirement benefit recipients (including disability benefit recipients who have converted to service retirement). By law, STRS Ohio retirees employed in a position requiring them to make contributions to the system (commonly referred to as “reemployed retirees”) are ineligible to serve as a member of the board.

The Retirement Board Election Manual and nominating petition forms will be available beginning Nov. 1 by calling STRS Ohio toll-free at 888-227-7877. Board members are not compensated for board service other than reimbursement for actual, necessary expenses.

Board Initiates Executive Director Search

The board voted to start the search for an interim executive director with the assistance of executive search firm Korn Ferry. The board also voted to initiate an RFP process to identify an executive search firm to assist in hiring a permanent executive director. Acting Executive Director Lynn Hoover will be retiring on Dec. 1.

Retirements Approved

The Retirement Board approved 176 active members and 57 inactive members for service retirement benefits.