Jim Kimmel's Inquiry re: Defined contributions, payroll deductions of active teachers

From Mike Havens, July 10, 2006

Subject: RE: Defined Contribution payroll deductions of active teachers

Dear Mr. Kimmel:

The employer contributions for all STRS Ohio plans (Defined Benefit, Defined Contribution and Combined Plan) go to the same place, (General Fund) without differentiation.

The investment choices are all managed by STRS Ohio, therefore there are no broker fees.

Thank you for the inquiry.

Mike Havens Benefits Counselor

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From Jim Kimmel to STRS, July 7, 2006

Please tell me what happens to the payroll deductions for STRS retirement sent to STRS by active teachers who have chosen the defined contribution method for their retirement.

Does this money go into the STRS general fund ,helping reduce the unfunded liability or is it held separately and not counted toward the reduction of the unfunded liability? Also, who pays the brokers' fees for handling the defined contribution investments selected by the teacher?

James O. Kimmel STRS Retiree