Cleveland.com: Retired Ohio public school teachers to receive the first cost-of-living increase since 2017
Retired Ohio public school teachers to receive the first cost-of-living increase since 2017
By Laura Hancock, cleveland.com
Cleveland.com
March 17, 2022
COLUMBUS, Ohio -- Retired Ohio public school teachers will receive a 3% cost-of-living adjustment later this year, the first increase since 2017.
The board of the State Teachers Retirement System, which goes by STRS and is pronounced “stirs,” approved the increase at its monthly meeting Thursday.
The raise will show up on retirees’ pension checks on their retirement anniversary date, starting on July 1, as the raise goes into effect for the fiscal year beginning then, STRS spokesman Nick Treneff said.
Included in the board’s resolution for the cost-of-living adjustment is a statement that it would consider additional increases in the future, no later than next spring, Treneff said.
The board was originally planning to consider a 2% increase. But the pension’s actuary said the fund could afford 3%. The board opted for the higher level due to higher inflation, as well as wanting to give retirees more because there’s no guarantee of yearly increases in the future, Treneff said.
Last, the resolution altered a previous change to pension eligibility. In 2012 the board implemented a policy that ratcheted up the minimum years of service and the age to be eligible for a pension so that by 2026, a teacher would have to have 35 years of service and be at least age 60 to retire.
But on Thursday, the board eliminated the age requirement. The 35 years of service still remains, but by eliminating the minimum age, younger teachers will be able to retire when they have enough years of service.
“That’s a benefit to people who go out a little earlier,” Treneff said. “While the (cost-of-living adjustment) enhancement is positive for retired members, I think they(THE RETIREES) wanted to do something to benefit the (working) members as well.”
Removing the age requirement will benefit working members, he said.
STRS and a group of retired teachers have been battling over austerity measures that the pension implemented over the past decade, including a reduction in the annual cost-of-living adjustment, then eliminating the cost-of-living adjustment completely from 2017 to 2022.
The retirement system said it had to shore up funds to recover losses from the last two recessions, because people live longer, and because teacher contributions as a whole have decreased from previously anticipated projections due to either lower-than-expected salaries and fewer teachers on the payroll.
The group of teachers, on the other hand, hired a nationally renown pension expert(SEIDLE) who is suspicious about fees the pension pays to Wall Street money managers, especially for “alternative investments,” which includes private equity, real estate, venture capital and hedge funds.
The pension expert is fighting the retirement system for access to documents showing fees, bonuses and other information. Former Ohio attorney general Marc Dann is representing the expert at the Supreme Court as he fights STRS for documents.
Ohio teacher Julie Sellers and retiree Elizabeth Jones, who are both running for seats on the STRS board, released a joint statement through the Ohio Federation of Teachers on Thursday, after the board’s vote.
They noted that the cost of living rises each year with inflation, yet it’s been years since retirees have seen an increase.
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posted by Kathie Bracy at 8:48 PM
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