STRS Ohio Presents Pension Reform Proposal to House Subcommittee
On Aug. 8, STRS Ohio executive director Mike Nehf told members of the House Health and Aging Subcommittee on Retirement and Pensions that the pension reform plan unanimously passed by the State Teachers Retirement Board in April is necessary to preserve the pension fund and that the board's action was taken to uphold its fiduciary duty to the members and retirees of the system. The House subcommittee has been holding hearings on pension legislation since mid-July and expects to take action on bills for all five Ohio retirement systems in September.
Mr. Nehf's presentation acknowledged that STRS Ohio's pension proposal is supported by the Healthcare and Pension Advocates for STRS — a coalition that is comprised of groups of active members, retirees and employers. The STRS Ohio plan increases age and service requirements for retirement; calculates pensions on a lower, fixed formula; increases the period for determining final average salary; increases member contributions to the system; reduces the cost-of-living adjustment (COLA); defers the COLA for future retirees; and calls for no COLA to be added in fiscal year 2014.
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