April Board News
Retirement Board Amends Plan to Strengthen the Financial Condition of the Pension Fund; Pension Design and Contribution Changes Approved
The State Teachers Retirement Board voted to amend its plan to further strengthen the financial condition of the pension fund at its April meeting and hopes to see legislative action on its pension reform plan in the coming months. The board's plan is projected to save about $13.3 billion in accrued liabilities, maintains a 1% employer contribution to STRS Ohio's health care fund and does not include any increase in employer contributions.
The board vote followed several months of discussion and study — including conducting an asset-liability study and a three-year actuarial experience review. All changes contained in the plan require legislative action by the Ohio General Assembly and the governor to be implemented. Components of the plan include:
The Retirement Board approved 200 active members and 105 inactive members for retirement.
Board Approves Health Care Program Changes
At the March 2012 Retirement Board meeting, STRS Ohio Member Benefits staff presented several recommendations for plan changes designed to extend the life of the Health Care Stabilization Fund. At its April meeting, the Retirement Board took action that will affect STRS Ohio Health Care Program enrollees. These changes will be detailed in upcoming newsletters, STRS Ohio News for Benefit Recipients, in May and July. The changes are expected to save about $31 million annually. Below is a summary of the changes for the Medical Mutual Plus and Basic Plans and the Aetna Medicare Plan (PPO). Changes for 2013 for the Kaiser, AultCare and Paramount plans will be reviewed in May.
Changes for 2012
Proposed Operating Budget for Fiscal Year 2013 Calls for Slight Increase
The Finance Department presented proposed system budgets for the 2013 fiscal year (July 1, 2012–June 30, 2013) during the April board meeting. The proposed operating budget totals $90,513,400, an increase of 0.9% over the current year’s budget. The current head count of 592 full- and part-time associates is not being increased in the coming year. The budget also provides funds for several new initiatives, including a health care audit, additional investment research and quotation system services and improvements to the member self-service section of STRS Ohio’s website. The proposed capital budget for fiscal year 2013 totals $1,845,700. The board will be asked to approve the budgets at its June meeting.
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