SmartTALK Summer 2018

STRS Ohio Announces Changes to the Defined Contribution and Combined Plans

On July 1, STRS Ohio implemented several changes that will impact members enrolled in the retirement system’s Defined Contribution Plan and the Combined Plan. STRS Ohio recently shared these changes in a special edition of SmartTALK that was sent by email or U.S. mail to all participants in these plans. Below is a summary of the changes. If you have questions about these changes, STRS Ohio’s Member Services team is ready to help. You can reach STRS Ohio toll-free at 888-227-7877, Monday–Friday from 8 a.m. until 5 p.m.

  • Lower fees for most allocation choices — STRS Ohio has lowered the annual asset management fee for 15 of its 18 allocation choices. See new fees listed on reverse side.
  • Additional allocation choices — STRS Ohio is now offering three new allocation choices. The new options include:

    — STRS MSCI ACWI ex USA Index Choice — an international equity allocation choice that provides exposure to emerging market countries. The approximate asset mix is 75% developed market countries and 25% emerging market countries.

    — STRS Target Choice options — The Target Choice 2055 and Target Choice 2060 allocation options target a year in the future that would roughly match a participant’s expected retirement date. Target Choice options do not provide guaranteed income or payouts. As the target date approaches, the more conservative the investment mix becomes — moving from a substantial allocation to stocks in the early years (for greater growth opportunities) toward a more balanced mix of stocks and bonds (to reduce volatility) as the target date nears.

  • Total Guaranteed Return Choice no longer accepting new contributions — STRS Ohio no longer accepts new contributions to the Total Guaranteed Return Choice. This change does not affect assets currently allocated to the TGRC, which will remain in the allocation choice until the end of the applicable five-year term(s).

STRS Ohio has contracted with Nationwide Retirement Solutions (NRS) as administrative service provider for the defined contribution aspects of the STRS Ohio benefits. If you have questions about your allocation choices, NRS can assist you. NRS representatives are available Monday–Friday from 8 a.m. until 6 p.m. You can reach NRS toll-free at 866‑332‑3342.

A description of each STRS Ohio allocation choice is available on the STRS Ohio website. Just click on “Daily NAVs” under the During Your Career heading to see net asset values for each allocation choice. Click on any of the allocation choices to see a more complete description along with the annual asset management fee for that choice.

STRS Ohio's Fiscal 2019 Investment Plan Calls for Continued Global Economic Growth

During its June meeting, the State Teachers Retirement Board adopted the fiscal year 2019 Investment Plan presented by staff. The plan details staff’s investment outlook and strategy for each asset class in the system’s Total Fund. The 2019 Investment Plan projects a combined overall return among all asset classes for the upcoming year at or near STRS Ohio’s policy objective return of 6.84% and anticipates sustained momentum for above-trend global economic growth during the upcoming fiscal year. The policy objective return is based on the expected returns for each asset class and takes into account STRS Ohio’s asset allocation for its Total Fund. Like all economic forecasts, the Investment Plan is based on certain assumptions, is subject to inherent risks and uncertainties, and should not be relied on as an indicator of future investment performance.

The Retirement Board’s investment consultants, Callan and Cliffwater LLC, reviewed and expressed support for the Investment Plan. The investment plan is available on STRS Ohio’s website and is also available by request through STRS Ohio’s Member Services Center by calling toll-free 888-227-7877.

Ask SmartTalk

Can I use Nationwide ProAccount to help with my asset allocation?

Yes. Nationwide Investment Advisors, Inc., an SEC-registered investment adviser, now offers a new service to STRS Ohio members who participate in the defined contribution program. Nationwide ProAccount is an optional managed account service* — available for an additional fee — designed to manage the selection of allocation choices within a participant’s defined contribution account. Nationwide will be sharing additional information about this program with all defined contribution program participants.

*STRS Ohio is not affiliated with Nationwide ProAccount. Fees charged for Nationwide ProAccount are in addition to fees for individual allocation choices. Participants are responsible for determining whether Nationwide ProAccount is appropriate for them.

STRS Ohio Lowers Asset Management Fees for Most Allocation Options

Effective July 1, 2018, the following fees were put in effect for STRS Ohio allocation options:

Allocation Choice New Annual Fees as of July 1, 2018 Old Fees
STRS Money Market Choice .10 .10
STRS Bloomberg Barclays U.S. Universal Bond Index Choice .07 .15
STRS Large-Cap Core Choice .30 .30
STRS Russell 1000 Index Choice .05 .10
STRS Russell Midcap Index Choice .07 .10
STRS Russell 2000 Index Choice .07 .10
STRS REIT Index Choice .10 .15
STRS MSCI World ex USA Index Choice .10 .20
STRS MSCI ACWI ex USA Index Choice .14 n/a
STRS Target Choice (all 9 options) .10 .20