Dan MacDonald reports (in absentia) on the September 18, 2025 STRS board meeting

From Dan MacDonald

September 26, 2025

COULDN’T ATTEND LIVE, STRS BOARD SEPTEMBER SUMMARY

I was unable to attend the September 18th STRS meeting in person or via streaming, but I do want to share that our newly elected active seat was filled by Chad Smith from Columbus City Schools, Franklin County.  Chad replaced Carol Correthers who did not seek re-election. His term extends through Augst 31, 2029.

The Investment Department reported a preliminary net total fund return for August of a positive 1.8%.  Total investment assets ended August approximately $102.5 billion; that is $1.9 billion up for FY 2026 which started July 1, 2025. The Legislative Committee also met.

Board member Pat Davidson presented a document, Possible Five-Year Goals for STRS SAP Process, which addressed actives, retirees, and the future state of STRS before the legislative changes of next month. Davidson’s suggested these restoration goals: Make 32/27 Permanent; Contribute to Health Care fund to solidify Health Care at 32/27 permanent; Implement fractional year for application for reductions in YOS 27-31.99; Bring member accounts where the original factor is lower than the current factors up to 6/1/25 levels for retirement from 8/1/15 - 5/1/25; Provide inflation relief that is equivalent of a 2% COLA per year for all retirees; Provide targeted inflation relief to retirees whose benefit is currently below 85% of their original purchasing power; For any SBP budget and/or de minimis amount that is given, the Board will allocate a minimum of 10% to strengthening the STRS fund. [Bravo, Davidson for trying to address everyone, even legislators.]

There was much discussion by many Board members, but no motions.  A push by an appointed member was to address concerns through a new Strategic Plan, to be completed by February 2026. [No way in HELL could that be accomplished in 5 months and be good for actives and retirees. Next month 4 appointees are to be added to the Board making an 8 appointed to 7 elected Board, thus flipping the voting power on the Board from teachers to government appointees AND also stripping any elected retiree or active Board members from being Chair or Vice-chair.]

Twelve persons spoke during Public Participation, 1 active, 11 retirees. One speaker addressed the growth of the general fund over the past 5 years while all others addressed the Republican takeover of the STRS Board and/or COLA.

These are the items I chose to highlight from the meeting. The next meeting will take place over October 15 to 17.