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September Board News

Sept. 22, 2023 Gavel

Board Welcomes New Member

The Retirement Board welcomed Pat Davidson to his first meeting as a member of the board following his election to a contributing member seat last spring. Mr. Davidson is a teacher in the Berea City School District. Mr. Davidson’s term runs through Aug. 31, 2027.

Independent Report Ranks STRS Ohio’s Member Service Level High, Costs Low

During the September meeting of the State Teachers Retirement Board, CEM Benchmarking shared the results of its annual Pension Administration Benchmarking Survey. The report shows STRS Ohio earned the second-highest service level score among the comparable peer universe of retirement systems.

The survey also measures administrative costs per active member and annuitant. STRS Ohio’s costs were about 10% lower than the group’s average costs. Additionally, those costs have decreased over the past eight years, while peer costs have increased.

Interesting Facts From the STRS Ohio Actuary File

STRS Ohio sent demographic data and the actuary file for fiscal year 2023 to the board’s actuary, Cheiron, to calculate annual pension and health care valuations. These valuation reports provide a snapshot of STRS Ohio’s funding status and are expected to be shared at the October board meeting.

The fiscal year 2023 file showed:

  • Total covered payroll increased 4.3% (STRS Ohio’s assumed rate of payroll growth is 3.0%).
  • Active educators in the Defined Benefit and Combined Plans increased by 0.6% over last year.
  • There were 3,702 new retirees in fiscal 2023, the highest total since 2015. This number is projected to grow over the next decade.
  • STRS Ohio had 209 benefit recipients ages 100 or older.
  • The oldest retiree was 108 years old and retired in 1973.
  • The STRS Ohio member who has been receiving a benefit the longest began receiving a disability benefit 66 years ago.

Board Receives Defined Contribution Program Update

STRS Ohio offers a Defined Contribution (DC) Plan and a Combined (CO) Plan in addition to the traditional Defined Benefit (DB) Plan. New STRS Ohio members have 180 days to select one of these plans or default into the DB plan. In fiscal 2023, 12% of new members selected the DC or CO Plan. In total, there are now nearly 28,000 DC or CO members, and defined contribution program assets stand at about $2.6 billion. Members who choose the DC or CO Plan have the option to change plans during their fifth year of membership.

Retirements Approved

The Retirement Board approved 329 active members and 65 inactive members for service retirement benefits.