Retirement Board Receives Actuarial Update Ahead of Next Month’s Pension and Health Care Valuation Reports
At the September meeting of the State Teachers Retirement Board, STRS Ohio staff provided some context for next month’s pension and health care valuation reports. Preliminary estimates for the pension fund show that progress continues for STRS Ohio’s funded ratio (the value of actuarial assets to the actuarial accrued liabilities) and funding period (the amount of time needed until actuarial assets match actuarial liabilities if all future experience exactly matches the valuation assumptions), as both are expected to show slight improvements when the valuation reports are presented.
STRS Ohio conducts an actuarial experience review at least every five years to measure the system’s economic and demographic assumptions versus the actual experience over the five trailing years. Staff compared the system’s fiscal year 2019 experience with the current assumptions and noted:
- Investment return and inflation for fiscal 2019 were less than STRS Ohio’s current assumption.
- Payroll growth was on target with the system’s 3% assumption.
- The mortality assumption that includes improvements in longevity from year-to-year appears to more closely match the increasing lifespans of members and retirees.
The next five-year experience review is expected to be completed in 2022.
At its October meeting, the Retirement Board’s actuarial consultant, Cheiron, will share the results of its pension and health care valuation reports. These reports provide a detailed look at the financial and actuarial health of the pension and health care funds. The highlights of these reports will be shared through Board News and the system’s website.
The Retirement Board approved 361 active members and 87 inactive members for service retirement benefits.
Other STRS Ohio News
STRS Ohio distributing Annual Statement of Account to members
STRS Ohio recently completed its upload of Annual Statements to members’ personal accounts. About 45,000 members have elected to opt out of receiving paper Annual Statements and will instead view this information online via their Online Personal Account. The paper versions of the Annual Statements are being prepared for mailing in late September.
Actuary file provides interesting facts about STRS Ohio member and retiree longevity
STRS Ohio completed the actuary file for fiscal year 2019 and sent it to the retirement system’s actuary, Cheiron, for the annual pension valuation report. The file provides insight to STRS Ohio member and retiree longevity. As of June 30, 2019, STRS Ohio had 198 benefit recipients who are age 100 or older. This includes 170 women and 28 men. Most of these centenarians are service retirees, while 56 are beneficiaries of retirees or survivors of an active member who died. The oldest STRS Ohio service retiree is 107 years old and retired in 1976. The retiree who has been receiving benefits the longest is a 106-year-old who retired in 1969 after 35 years of service.
Active members have their own type of longevity in the classroom, with 21 members having 50 or more years of service and 173 members exceeding 40 years of service in the classroom. STRS Ohio salutes these individuals and all STRS Ohio members for their service to Ohio’s students.