April Board News
STRS Ohio Recognized for Transparency
For the third consecutive year, Ohio Auditor of State Keith Faber has presented STRS Ohio with its Highest Achievement in Open and Transparent Government award. For more on the program, visit: https://ohioauditor.gov/open/stars.html.
Separately, the National Conference of Public Employee Retirement Systems (NCPERS) also recognized STRS Ohio with its Certificate of Transparency. The certificate acknowledges STRS Ohio’s efforts in furthering open disclosure, increasing the range of data available and contributing to the public’s understanding of public retirement systems. Following the Retirement Board meeting each month, STRS Ohio posts financial reporting and expenses on our website — including detailed operating expenses.
Board Continues Discussion of Possible Sustainable Benefit Enhancement Plan
The Retirement Board reviewed benefit enhancements at its April meeting. The board’s actuarial consultant, Cheiron, presented several options for board consideration. Before a benefit enhancement can be implemented, Cheiron must determine that the change would not materially impair the fiscal integrity of the retirement system.
The board asked Cheiron to bring back additional analysis in May.
Proposed Operating Budget Reflects Increase of 2.8%, Staff Reductions
STRS Ohio’s Finance Department presented proposed budgets for fiscal year 2024 (July 1, 2023– June 30, 2024). The proposed operating budget provides for quality member services to STRS Ohio’s public educators and the ability to meet legal, regulatory and other requirements, as well as the implementation of a number of fiduciary audit recommendations. The proposed operating budget totals $115.6 million, an increase of 2.8% from the current year. The budget reflects a reduction of 17 positions at STRS Ohio. The retirement system has eliminated more than 200 positions since 2002.
The system’s proposed capital budget for fiscal 2024 is $8.3 million. Information processing and computer software needs are behind much of the 6.1% increase in this budget.
The proposed operating and capital budgets will be submitted to the Ohio Retirement Study Council, with the board expected to vote on the 2024 budgets in June.
Board Votes to Award Alternative Investment Consulting Contract to Callan
The Retirement Board’s investment committee heard presentations from two potential alternative investment consultants at its March and April meetings and the board voted to negotiate and execute a contract with Callan LLC to provide these services. Callan is currently STRS Ohio’s general investment consultant.
Retirements Approved
The Retirement Board approved 73 active members and 74 inactive members for service retirement benefits.