September Board News

September Board News

Posted: Sept. 24, 2024

State Teachers Retirement Board Hears Presentation on Supplemental Benefit Payments

Chief Actuary Donald Schley reviewed the history of the supplemental benefit payment that retired members received every year from 1980 to 2000. STRS Ohio paid a total of $700 million over those 21 years, which is a $10 billion impact to assets in today's dollars due to the effects of lost investment income and compounding.

The Retirement Board can approve a supplemental benefit when certain financial thresholds are met pursuant to Ohio law. Calculation of the possible benefit is based on a recipient's years of service and years of receiving benefits and would be a different amount than a monthly benefit check. If paid, a supplemental benefit payment would reduce the amount available for board spending in the spring from the Sustainable Benefit Plan.

In October, the board's actuary will complete the pension actuary valuation, then staff will complete the calculations and a determination can be made regarding a supplemental benefit payment. The board will then decide at its October meeting whether a supplemental benefit will be paid this December.

Board Discusses Inflation-Related Topics

The Retirement Board heard presentations about retired member purchasing power over time and cost-of-living adjustments (COLAs). For more detailed information about these presentations, visit the STRS Ohio website and click on "Board Meetings" under the About menu. Board materials, presentation slides and video recordings of past meetings are available.

Legislative Updates

• Windfall Elimination Provision (WEP) and Government Pension Offset (GPO): The Retirement Board adopted a resolution urging members of the Ohio Delegation to Congress to pass the Social Security Fairness Act of 2023 (H.R. 82), which repeals WEP and GPO. The board also heard an update that Acting Executive Director Lynn Hoover and Retirement Board Chair Rudy Fichtenbaum recently sent a letter to Ohio's members of Congress urging them to sign a discharge petition for H.R. 82. WEP and GPO are federal laws that impact employees who contribute to a public retirement system in lieu of Social Security, but who also have contributed to Social Security under other employment. For more information on WEP and GPO, visit the STRS Ohio website and search for "WEP GPO."
• Employer rate increase initiative: STRS Ohio staff updated the board on the initiative to seek an increase in the employer contribution rate. Since January, the Governmental Relations team has had more than 60 meetings with legislators and staffers to discuss the possibility of sponsoring a bill to increase the employer rate to 18% phased in over eight years. A web page will be publicly available on the STRS Ohio website with more background on why this increase is needed.

Member Benefits Survey Results Show High Satisfaction

After members interact with staff in one of STRS Ohio's Member Benefits departments, they are asked to complete a survey. Every program surveyed reported high satisfaction with the STRS Ohio staff. Over 95% of respondents said they were satisfied or better with the overall service and experience.

Board Welcomes New Member

Contributing teacher Michael Harkness (Akron Public Schools, Summit County) was welcomed to his first meeting as a board member. Harkness was elected by the board to fill the seat vacated by Steve Foreman in June. His term runs through Aug. 31, 2025.

Steen Recognized for Board Service

The Retirement Board recognized Wade Steen for his years of service as a board member and thanked him for his service. Steen was first appointed to the board in 2016.

Retirements Approved

The Retirement Board approved 461 active members and 88 inactive members for service retirement benefits.

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