What recent changes has STRS Ohio made to lower its unfunded liabilities?
To address its growing liabilities, STRS Ohio took several steps over the years, including increasing members’ contribution rate; lowering the annual interest rate paid on member withdrawals; stopping the 13th check; decreasing the amount of employer contributions put into the health care fund; reducing the match on reemployed retirees’ lump-sum payments or monthly annuity benefits; and adjusting investment asset allocations and accompanying expected returns. Most of these changes could be made by the Retirement Board and did not require legislation. At this time, though, the plan the board is proposing requires legislation to make changes to current state statute.
