Retirement Board Chair, Vice Chair Named
During its June meeting, the State Teachers Retirement Board elected Dale Price (Toledo Public Schools, Lucas County) as its vice chair for the coming year. According to Board Policies, Mark Hill (Worthington City Schools, Franklin County), who is currently serving as vice chair, automatically moves into the position of chair. Hill and Price will assume their new responsibilities on Sept. 1, 2012.
Retirement Board Accepts the Annual Investment Plan
The Retirement Board voted to accept the Investment Plan for fiscal year 2013 (July 1, 2012–
June 30, 2013). The plan details staff's investment strategy for each asset class comprising the system's investment fund.
STRS Ohio staff expects only modest growth in the capital markets during fiscal year 2013. With the threat of global debt problems having a harmful effect on the markets, STRS Ohio will continue to closely monitor markets to assess the risk levels. Investment associates expect interest rates to remain low throughout the fiscal year. Staff will also begin to implement the recently completed STRS Ohio asset-liability study — consistent with the phased-in target weights. The new asset mix for the system's total fund will be a slightly higher risk-return portfolio with a decrease in broad U.S. equity holdings and modest increases in the international equity, private equity and opportunistic/diversified portfolios. Staff will also continue to monitor the progress of pension reform legislation. If reform changes are not promptly implemented, a more conservative portfolio would be recommended to meet the system's liquidity needs to pay benefits, as the asset-liability study noted.
A memo to the board reported that market volatility in late May/early June has somewhat changed market values, interest rates and expected returns in the Investment Plan. Staff will evaluate the need to issue an addendum to the annual Investment Plan once market levels are set on June 30, 2012.
In early July 2012, the Fiscal 2013 Investment Plan will be posted on the STRS Ohio website. A copy of the plan can also be requested by calling STRS Ohio's Member Services Center toll-free at 1-888-227-7877.
The webmaster is responsible for the updates.