Wednesday, June 26, 2013

STRS and only the best and brightest invest our monies?

From John Curry, June 26, 2013
The statement below was taken from pages 1 and 2 of the OPERI newsletter. Here is a link to that newsletter:
"INVESTMENT RETURNS: It was recently reported to the Ohio Retirement Study Council that all of the retirement systems had positive investment results during the year 2012. For the six months ending December 31, 2012, OPERS had a return of 8%, and posted 14.8% for the year. For the same period STRS had a return of 7.5%, and posted 13.8% for the year. OP&F had a 7.9% return and 14.9% for the year. SERS had an 8% return and 14.4% for the year. HPRS had a 6.4% return and 11.9% return for the year. Over the ten year period, OPERS had an average return of 8.2% and beat its benchmark by 0.3%."

Tuesday, June 25, 2013

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.
Larry KehresMount Union Collge
Division III
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