Jim Stoll: STRS in Big Financial Trouble

From Jim Stoll, June 24, 2013

John and all, I find it interesting that STRS buried the financial news below in a June Newsletter.  At this rate of burn through cash, even despite recent changes Strs, by my calculations STRS will soon fall below the 30 year funding required by law and more painful changes for retirees and actives will be necessary to stay solvent. Burning through two billion dollars every year will bankrupt the system eventually. Oh and look what we got from our millionaire club investment staffers with their outrageous bonuses. A little more than 2 percent return, but hey they beat their benchmark, so lets pay them millions in Bonuses..... When will STRS membership wake up and demand changes......probably when it's too late.

Investments, Financial and Benefits News Update

Investment and financial highlights for fiscal year 2012

•  STRS Ohio paid $5.7 billion in service retirement, disability and survivor benefits to about 143,200 benefit recipients, plus $628 million for health care coverage.

•  STRS Ohio received about $2.6 billion in member and employer contributions. Net investment income totaled about $1.2 billion.

•  The investment rate of return was 2.34% in fiscal 2012. Five- and 10-year total fund annualized returns are 1.08% and 6.95%, respectively.

•  Plan assets decreased 3.8% from the prior fiscal year.