Retirement Plan Reselection Period Nears for Eligible Members
STRS Ohio members who participate in the Defined Contribution Plan or Combined Plan and are in their fifth year of membership will have the option to reselect their retirement plan in early 2020. Members eligible for this reselection period were enrolled as new STRS Ohio members between July 1, 2015, and June 30, 2016.
Those eligible will be notified about the reselection option by early 2020. About four to six weeks later, those members will receive personalized reselection materials that include individual account balances, plan options and enrollment instructions. The retirement plan selected during this period will be permanent. Members can choose between STRS Ohio’s Defined Contribution Plan, Combined Plan or Defined Benefit Plan.
Eligible members who do not make a choice during the reselection period will, by law, remain enrolled in their current plan. Members who decide to switch from the plan they are now enrolled in will convert their current account to their new retirement plan choice on July 1, 2020.
If you have questions regarding the reselection option or about your eligibility for this choice, please call STRS Ohio’s Member Services Center toll-free at 888‑227‑7877.
Annual Report to Arrive Soon
STRS Ohio’s Defined Contribution Investments Annual Report for fiscal year 2019 will be sent later this year to all members participating in the Defined Contribution Plan or the Combined Plan. The report will also be available to view or print from the system’s website.
The annual report includes an economic overview that details forces that impacted the markets during the fiscal year, a performance recap and analysis for each allocation choice, a breakdown of defined contribution holdings and percentage of total assets by allocation choice, and a disclosures section that features important rules and concepts, as well as a glossary of frequently used investment terms.
Asset allocation is the process of diversifying your investment dollars across different asset classes. Industry research (Brinson, Hood, Beebower study) has shown that more than 90% of the variation in portfolio return is determined by asset allocation. By diversifying your portfolio in a manner consistent with your investment style, you can pursue additional investment opportunities while simultaneously spreading out your investment risk.
Wilshire Associates developed a questionnaire that can help investors determine their investment style and offers sample portfolios that you can use as a guide as you pursue your allocation strategy. You can find the questionnaire and sample portfolios on the STRS Ohio website.
What resources are available to help me meet my retirement goals?
STRS Ohio has contracted with Nationwide Retirement Solutions (NRS) in administering the defined contribution aspects of the STRS Ohio retirement plan options. NRS retirement specialists can discuss your investment choices with you by phone. Just call toll-free 866‑332‑3342, Monday–Thursday, 8 a.m.–8 p.m., or Friday 8 a.m.–6:30 p.m. to talk with an NRS representative. Additional investment information from NRS can also be found here. You may also want to consult with a financial planner or advisor concerning your retirement planning needs.
Investment Choice Profile
This quarter’s SmartTALK profiles the STRS Target Choice options.
Target Choice options target a year in the future that would roughly match a participant’s expected retirement date. The Target Choice options do not provide guaranteed income or payouts. The asset allocation for these choices are geared toward the average investor. 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. These allocation options consist of blends of domestic and international equities, fixed income and real estate investments. Glidepaths for each of these allocation choices indicate how STRS Ohio expects the asset allocations to change over time. These glidepaths are available on the STRS Ohio website.
STRS Ohio Recognizes 100th Anniversary
A Legacy of Service to Ohio Educators
The State Teachers Retirement System of Ohio was established by law in 1919 — the first statewide, actuarially based teacher retirement system in the United States. After a century of providing benefits and quality service to its members, STRS Ohio is recognizing its 100th anniversary during this fiscal year.
The State Teachers Retirement Board and staff invite you to visit the system’s website and be a part of the 100th anniversary recognition as we honor Ohio’s teachers for their contributions to society. The special website section offers a timeline of significant dates in the retirement system’s history plus an opportunity to share your favorite stories from your time in the classroom.
The Stories section also includes favorite memories from some of STRS Ohio’s retired members — including some of those who have already celebrated their 100th birthday. You can also check out STRS Ohio on our social media channels (Facebook, Twitter and LinkedIn) as we recognize 100 years of serving Ohio’s public educators.