• Retirement Plan Reselection Decision is Due June 1
• Total Guaranteed Return Choice 2013 Rate Set at 5.0%
• Total Guaranteed Return Choice 2008 Term Ends June 30
• Investor’s Corner
• Investment Choice Profile
• Ask SmartTALK

Retirement Plan Reselection Decision is Due June 1
If you are eligible for your five-year retirement plan reselection and have not sent your enrollment form to STRS Ohio, you must do so to indicate your permanent plan selection by June 1, 2008, or you will be moved to STRS Ohio’s Defined Benefit Plan. The reselection choice is available to Defined Contribution Plan or Combined Plan participants who were enrolled as new members between July 1, 2003, and June 30, 2004.

You must complete an enrollment form — even if you want to remain in your current plan. Eligible members who do not make a choice before the June 1, 2008, deadline will, by law, move to the Defined Benefit Plan and will no longer have a Defined Contribution or Combined Plan account. This is a one-time opportunity to change plans — the decision you make now is permanent and the plan you choose will be your retirement plan for as long as you remain an STRS Ohio member.

In February, STRS Ohio mailed packets outlining retirement plan reselection options to eligible members. These packets included personalized account information as well as an overview of each retirement plan, a plan comparison chart and an enrollment form with a reply envelope.

It is STRS Ohio’s goal to receive an enrollment form from every member now eligible for reselection. Your timely response will save STRS Ohio the cost of follow-up mailings and phone calls. If you have questions or need more information about your reselection options, please call our Member Services Center toll-free at 1-888-227-7877 or visit the STRS Ohio Web site.

Total Guaranteed Return Choice 2013 Rate Set at 5.0%
STRS Ohio will soon mail you enrollment instructions and information for the STRS Total Guaranteed Return Choice 2013. The State Teachers Retirement Board voted in March to set the interest rate at 5.0% for this allocation option. The rate applies to contributions made during the July 1, 2008–June 30, 2009, fiscal year for participants who choose this option.

The Retirement Board’s action means that Total Guaranteed Return Choice 2013 participants will earn 5.0% interest annually until June 30, 2013, for all transfers and contributions made during the fiscal year beginning July 1, 2008.

Unlike other investment choices offered by STRS Ohio, the Total Guaranteed Return Choice provides a guaranteed interest rate on contributions and transfers made in a given year. Members who make this allocation choice at the beginning of the fiscal year must place all contributions into it for the entire fiscal year. In exchange for this protection against any possible negative returns, participants must “lock-in” their contributions and transfers made during the year until the end of a five-year term.

The effective annual interest rate for each five-year term is reviewed and reset on an annual basis.

Total Guaranteed Return Choice 2008 Term Ends June 30
If you allocated contributions to the Total Guaranteed Return Choice 2008 (for contributions made between July 1, 2003, and June 30, 2004), you have an important decision to make. The five-year term for this choice ends on June 30, 2008, at which time you may choose to:

1. roll the accumulated value into the Total Guaranteed Return Choice 2013 at an annual interest rate of 5.0% (see story above), or

2. transfer the accumulated value to other STRS Ohio investment choices.

If neither option is chosen, the accumulated value of the choice will automatically be rolled into the STRS Money Market. Watch your mail in the coming weeks for more information and instructions about how to make your selection.

Investor’s Corner
Allocation Review
Volatility in the financial markets during the past 12–18 months resulted in erratic returns on domestic and international equities. As you evaluate your current asset mix, it might be a good time to make sure this mix reflects your asset allocation strategy, you may have considered a number of factors, including your risk tolerance and the number of years until you retire. Over time, however, the performance of your allocation choices varies, and the value of these individual allocation choices may be different than your original goals.

Does your portfolio reflect your current allocation strategy? Have your investment goals changed? Do you need to diversify your portfolio? Most experts recommend a periodic portfolio review to determine if you need to rebalance — a good idea if you haven’t done so in the past 12–18 months.

Investment Choice Profile
This quarter’s SmartTalk profiles the STRS REIT Choice.
The STRS REIT Choice invests in the public securities of real estate companies, primarily real estate investment trusts (REITs). These securities can provide a high dividend component with a potential for capital appreciation. The objective is to provide a long-term total return that exceeds the fund’s benchmark, the Dow Jones Wilshire REIT Index, before fees.

Holdings in the industrial/office, retail and residential sectors make up nearly 80% of this allocation option. It is generally constructed to provide both geographic and property-type diversification. Top holdings by company include Simon Property Group, Inc., Vornado Realty Trust, Prologis Industrial Trust, Boston Properties Inc. and Equity Residential Properties.

Ask SmartTALK
What is a “Recession”?
The term “recession” is generally defined as a temporary slowdown in economic activity — usually punctuated by two consecutive quarters of negative growth in the gross domestic product. There is some debate among financial experts whether the U.S. economy is headed for or currently in a recession. Most agree, however, that if that does occur, the recession would be mild.

STRS Ohio News for Active Members
STRS Ohio News for Benefit Recipients