Retirement Board Continues Its Review of Funding Policy
At its April meeting, the State Teachers Retirement Board continued discussion on its funding policy and reviewed possible updates to the policy. The current funding policy’s stated purpose is to “state the Board’s objectives for funding and to lay out clear criteria for making decisions regarding changes to funding and benefits, as well as when those changes should be considered by the board.” The funding policy also includes the board’s goal and objectives for funding member and retiree pension benefits.
Board members discussed the policy objective of “100% funding” (when plan assets are equal to the expected benefits to be paid to the membership, if STRS Ohio meets all future economic and demographic assumptions). Staff projects that if the system’s experience matches these assumptions, the plan will be 100% funded in 2034. The board asked for additional information from staff and plans to continue its review of the funding policy at its May meeting.
Proposed STRS Ohio Operating Budget for Fiscal 2020 Calls for 2.6% Increase Over Current Year Budget
STRS Ohio’s Finance Department presented its proposed system budgets for the 2020 fiscal year (July 1, 2019–June 30, 2020) at the April board meeting. The proposed operating budget totals $104.4 million, an increase of 2.6% over the current year budget. The proposed fiscal 2020 budget reflects 535 full-time equivalent associates, down from 538 in the current year and marks the sixth straight year of headcount declines as technology automates more processes. The proposed budget projects a 1.8% increase in the Salary and Wages category and includes an increase in costs for investment research services. The proposed capital budget for 2019 totals $4.9 million, an increase of 17.5% over the current year’s budget. The fiscal 2020 budget includes replacement of the roof on the South Building, an HVAC system upgrade and enhanced building security initiatives.
Expense information is posted on STRS Ohio’s website each month, and detailed payments by vendor are also uploaded to the Ohio Treasurer’s Open Checkbook site each year.
The Retirement Board approved 73 active members and 69 inactive members for service retirement benefits.