Trina Kay Prufer: Best Practices - STRS created a defined-benefit retirement system that left Ohio’s retired teachers in the worst financial situation possible.

From Trina Kay Prufer

August 30, 2023

https://www.gfoa.org/materials/preparing-an-effective-summary-plan-description?fbclid=IwAR0C3-gKm0WEfjpad2_0DW1L_gO-QC_bZmaa7F3wSyiNEXfAzPNv4sXu1jA

Best Practices - STRS created a defined-benefit retirement system that left Ohio’s retired teachers in the worst financial situation possible. 

We were lulled into believing we had financial security in the form of inflation protection, only to be told it was all a mirage. The reality is that 20 years without a cola leaves retirees with a benefit worth less than half its original buying power. Because we are not eligible for Social Security, there is no safety net whatsoever, for the aged, disabled, survivors and even those with supplemental assets are left not knowing how to plan for the future. Ohio’s retired teachers never had a chance to prepare for a financially secure retirement.

If, as STRS claims, the cola was NEVER meant to be an integral part of the benefit, we should have been informed of this risk, as it altered our security, safety and ability to provide for basic needs.

If all pensions systems followed the example of STRS, it would destroy the defined-benefit as a viable option for retirement planning.

Best Practices are the guard rails of what every government employee should expect from their retirement system. It’s the glue that holds the system together. It’s a common set of expectations, rules and ethical practices. You be the judge of how STRS measures up.