The State Teachers Retirement System of Ohio’s board has approved a cost-of-living adjustment and delayed increasing the years of service required to be eligible for retirement benefits.
The board decided on a 1.0% cost-of-living adjustment in fiscal year 2024 for retirees who started receiving benefits on June 1, 2019, or earlier. The increase, available to retirees who have already received benefits for 60 months, will be added to the base benefit on the retirement date anniversary and each month afterward.
For example, a teacher who retired effective July 1, 2018, will begin receiving a COLA on July 1 of this year, and a teacher who retired effective June 1, 2019, or earlier will begin receiving a COLA on June 1, 2024. However, members who retired July 1, 2019, or later are ineligible.
For teachers currently working, the board extended by five years—through July 2028—the current retirement eligibility rule that requires 34 years of service to receive unreduced retirement benefits. The threshold had been scheduled to be raised to 35 years of service on August 1.
Additionally, the board was presented an in-depth look at the performance-based incentive plan for eligible associates in the investment department, with the report provided by analysts at McLagan Partners, a unit of Aon Consulting. According to the pension fund. the review found that its plan is generally aligned with competitive market practices and that “STRS Ohio competes with a broad range of firms for investment talent.” The incentive plan is intended to attract, motivate and retain top-caliber professionals.
The board added that it will review benefits again with its actuarial consultant, Cheiron, no later than spring 2024 to decide if additional benefit plan design changes are needed.
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Tags: Cheiron, COLA, Cost of Living Adjustment, Ohio STRS, Pension Fund, Retirement System, State Teachers Retirement System of Ohio