SmartTALK

In a few weeks, STRS Ohio will send retirement plan reselection information to Defined Contribution Plan and Combined Plan participants who are in their fifth year of service and are now eligible for their permanent plan election. If you are eligible to reselect your retirement plan and are changing plans, you must submit your retirement plan reselection by June 1, 2024, and the plan choice will become effective on July 1, 2024. Below, SmartTALK provides answers to questions about the reselection period.

Who is eligible to reselect their retirement plan?

The reselection window is open to Defined Contribution Plan or Combined Plan participants who are in their fifth year of STRS Ohio membership. Members are eligible if they enrolled as a new member between July 1, 2019, and June 30, 2020. If you were hired during this period, you will be notified when you are eligible for plan reselection during your fifth year of membership.

What retirement plan choices are available and how do I indicate my selection?

Your options include the STRS Ohio Defined Benefit Plan, the Defined Contribution Plan or the Combined Plan. You can log in to your Online Personal Account and make your selection online after you receive your reselection information in March.

Do I have to change plans?

No. Eligible members who do not make a choice during the reselection period must remain in their current plan for as long as they are STRS Ohio members.

What happens to my defined contribution account if I change plans?

The answer depends on your current plan and the plan you now choose as your permanent plan. If you select the Defined Benefit Plan, your current defined contribution account will be closed, and you will no longer have an account to manage. Instead, a defined benefit account will be created for you, based on your years of service as if you originally enrolled in the Defined Benefit Plan. If you select either the Defined Contribution Plan or the Combined Plan as your permanent plan, you will still have a defined contribution account to manage. The STRS Ohio Retirement Plan Reselection Options brochure that you will receive in March covers these options in greater detail.

Will I have another chance to reselect my retirement plan?

No. 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 are an STRS Ohio member. The deadline for your permanent reselection is June 1, 2024. You must respond with your selection by that date. If STRS Ohio does not receive your selection by the deadline, you must remain in your current plan, in accordance with Ohio law.

What if I don’t receive my reselection packet in the mail or if I have more questions?

If you have not received your reselection packet by the end of March, call our Member Services Center toll-free at 888-227-7877 for a replacement packet. STRS Ohio staff is also available to answer any questions you have about this important decision.

Benjamin Borich recently joined STRS Ohio as the new director of the defined contribution program. As the director, Ben will oversee STRS Ohio’s $2.5 billion DC Plan.

In his previous role with Morgan Stanley, Ben consulted on 50 DC plans with $3 billion in assets while serving more than 60,000 participants. Ben brings 15 years of institutional investment consulting and DC experience to his role. He is passionate about executing plan provisions and communicating resources to empower members to feel confident in their retirement goals.

Online Resources

STRS Ohio and Nationwide Retirement Solutions (NRS) offer online resources to help you plan for a sound retirement. The NRS/STRS Ohio website offers tools and tips including:

• Secure access to your online account
• Ability to see your account balance and set allocation for future contributions
• Financial tools and calculators
• “My Interactive Retirement PlannerSM” — a retirement planning tool that helps you assess your retirement readiness

If you have not yet registered for your online account, you can do so here.

This quarter’s SmartTALK profiles the STRS Large-Cap Core Choice.

The STRS Large-Cap Core Choice is an allocation choice that seeks to achieve long-term returns that are greater than the Russell 1000® Index, before fees. This choice invests in larger U.S.-based companies across a wide spectrum of industries. The focus is on investing in the best stocks from within each industry group.

Companies in the Information Technology, Health Care, Financials, Consumer Discretionary and Industrials sectors make up about 60% of the holdings for this choice. Top holdings by company include Apple Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc. Class A and Exxon Mobil Corp. Intermediate- and long-term performance figures for this and all allocation choices are provided on the Investment Performance Report.