[Emeritiassoc] STRS town hall

[Rossiter, Rosemary]

Dear Emeriti:
Emeriti who were not able to attend the recent STRS town hall asked for information about what went on so here are my notes. Also, attached is a recent article from the Columbus Dispatch which describes Board action regarding the return of Bill Neville as director.

There is an Ohio Council of Higher Education Retirees which meets quarterly with STRS staff and one member of the Council attends meetings of the STRS Board.  Mike Williford represents Ohio University on the Council.  I think it's fair to say that what was discussed in the town hall and what the Dispatch reported are similar to what the Council has heard.

At the town hall on February 21,  the audience was active and retired public school teachers and retired Ohio University faculty.

Lynn Hoover, the acting STRS director, began by stating that the pension fund is in sound financial position.  The total fund stands at $91 billion and is 81% funded. The funding period is now the lowest in several decades at 11 years.  (Fully funded would be zero years.)  The health care fund is in very good condition also.

Ms Hoover listed three goals for STRS:
1. Providing an ongoing COLA for retired members
2. Decreasing the years of service required for teachers to retire with full benefits from 34 years to 30 years
3.  Increasing the employer contribution to STRS

STRS must provide for future retirees as well as providing for those now retired. The demographics of the STRS membership is such that expenditures to provide a COLA and expenditures to decrease the years of service are very different.  For example, a 3% COLA means an outlay of $20 billion while decreasing the years of service means $4 billion.  While there is desire for a COLA, STRS must be in compliance with Ohio law which pertains to the health of the pension fund.

There were only a few comments about the recent audit of the pension fund and the more recent decision to put Bill Neville on administrative leave.  The audit did not produce anything of material importance.  The STRS staff is not involved in actions of the Board and commented only what has appeared in newspapers. As has been reported the Board is equally divided about the STRS administration.

Best regards,
Rosemary Rossiter
Em Prof of Economics
Pres, Ohio Univ Emeriti Assc




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