STRS Ohio Update From Acting Executive Director Lynn Hoover
One of my first priorities this year was to get on the road and hear from as many members as I could. Thus far, I have met with hundreds of members from around the state.
Listening and talking with you has deeply impacted me and further emphasizes the importance of our mission to serve all of you.
Thank you for sharing your stories with me.
I am dedicated to conveying your perspectives with legislators, State Teachers Retirement Board members and other stakeholders. STRS Ohio staff has ongoing conversations with state lawmakers and will provide legislators with all requested information as they continue their discussions about governance of the pension system. I am committed to working together, which is paramount for our system as we move forward. Active teachers have described their current classroom environment being dramatically different from when they started teaching. The retirement system’s benefit changes — which were needed for the stability of the fund — have created hardship for some of our members; and retirees on a fixed income have been hit especially hard.
Compounding this hardship, misinformation about STRS Ohio has caused frustration, uncertainty and fear for our members. It is disheartening that society is filled with polarizing views on about every aspect of our lives, and your pension fund is unfortunately no different. I encourage you to be thoughtful and selective in how you obtain information about STRS Ohio.
Here are some comments that I’ve heard that can be answered in the following chart:
| Claim | What Third Parties Are Saying |
|---|---|
| STRS Ohio has been mismanaged | STRS Ohio “is a generally well-run, high performing operation.”1 The “organizational structure, control environment and operations are suitably designed and well-monitored, both internally and by independent experts.”2 |
| Investments have underperformed | STRS Ohio has had “remarkable long-term investment returns”3 and is the top-performing Ohio fund over the past decade.1 Investment performance is in the top quartile compared to peers.2 |
| STRS Ohio is the only Ohio pension without a cost-of-living adjustment (COLA) | STRS Ohio approved two permanent COLAs in the past three years (1% effective in fiscal year 2024, 3% effective in fiscal year 2023). Two of the other four Ohio systems reduced COLA to zero in recent years.3 |
| Investment expenses are exorbitant | Investment costs are lower than peers’ costs.1 STRS Ohio has a lower overall cost of investments than peer pensions, as reported by CEM.2 |
| Lack of transparency, especially private equity (PE) fees | Controls over PE fees are appropriately designed and implemented.2 STRS Ohio’s “early adoption of what has become known as GIPS performance standards demonstrates a commitment to transparency and fairness when reporting performance” and is a leading practice.1 |
1Fiduciary Performance Audit From Funston Advisory Service
2Special Audit from the Ohio Auditor of State
3Ohio Retirement Study Council Historical Experience Report
Map shows areas of the state where town hall meetings have previously been held (dark blue stars) and future locations (light blue stars).
In the coming weeks and months, I will continue to share information about your pension fund. I encourage members to come to STRS Ohio directly for information and to answer any questions you have. You can find us on the STRS Ohio website; reach us directly at 888‑227‑7877 (toll-free) or use the ContactUs form to email us. If you would like to view my presentation and Q&A with members at the town hall meetings we have been holding across the state, visit the Town Hall page on our website. This page also features video clips of the most common questions we hear during the Q&A portion of the meetings.
If social media is a source of information for you, STRS Ohio’s Facebook page is at this link: STRS Ohio Facebook. There are other Facebook groups that are run by STRS Ohio members that feature some members’ opinions of the pension system. Please note: only the official Facebook page at the link above is directly affiliated with STRS Ohio.
At STRS Ohio, the interests of more than half a million members are our top priority. We remain dedicated to fiscal responsibility and making sure your retirement system is always here for you and serves all members, both active and retired.
Lynn Hoover
Acting Executive Director
STRS Ohio
The mission of STRS Ohio is to provide Ohio’s public educators a foundation for their financial security.