STRS E-Update

Board Adopts Strategic Framework to Strengthen Pension Sustainability and Guide Future Benefit Decisions

The State Teachers Retirement Board unanimously approved a strategic decision-making framework that will guide how future resources may be allocated to strengthen the pension fund and responsibly adjust benefits for Ohio’s educators and retirees in accordance with Ohio law. As part of its framework, the board has expressed a goal to make 32 years of service the permanent standard for an unreduced retirement benefit and to provide a permanent 1% cost-of-living adjustment (COLA) for retirees.

The framework establishes clear funding benchmarks and governance guardrails to ensure benefit decisions are made deliberately, transparently and with long-term sustainability as the priority. Developed through extensive collaboration among board members, staff, actuaries and independent advisors, the framework provides a consistent roadmap for future discussions while maintaining a strong margin against fiscal impairment.

Over the past several years, strong investment performance and prudent governance have improved the system’s financial position, enabling the board to adjust certain benefits while continuing to strengthen the fund. The newly adopted framework builds on that progress by outlining when, how and to what extent available resources may be considered — reinforcing disciplined decision-making before specific benefit actions are contemplated. The board’s action is informed by recent survey feedback from STRS Ohio members and retirees. These priorities reflect the board’s ongoing efforts to reach the goal of both a 32-year unreduced retirement threshold and a 1% annual COLA as part of the benefit structure.