More than 150,000 retired Ohio teachers are learning some good news – that they’ll see a cost of living adjustment, or COLA, in their pension checks for the first time in years starting for some in July.
The State Teachers Retirement System board voted to up their benefits as other pension systems have continued or increased theirs, but that could change again.
The board voted to approve a one-time 3% cost-of-living increase on monthly checks for those who've been receiving benefits for at least 60 months, or since before June 1, 2018. The resolution also eliminated the minimum retirement age of 60. That was supposed to take effect in 2026.
Teacher contributions to the fund weren’t reduced and another benefit review will happen next spring, so further adjustments could be made. There was some concern expressed that the fund is paying out more than it's bringing in.
State Teachers Retirement System Director William Neville told the legislature’s Retirement Study Council that "strong investment returns" in the last fiscal year have brought STRS to 80.1% funded, up from 77.4%. STRS manages about $94.5 billion in assets for half a million retirees and active public educators.
STRS has maintained the COLA suspension was needed to protect the fund’s liability. It had reduced the COLA from 3% to 2% in 2013 before suspending it completely in 2017.
As other pension funds continued their COLAs, teachers grew frustrated. A former SEC lawyer hired by retired teachers determined STRS wasn’t transparent and had squandered money, but STRS maintained it had appropriate oversight and was committed to transparency.
The state auditor’s office is also still working on a review of STRS.
Copyright 2022 The Statehouse News Bureau. To see more, visit The Statehouse News Bureau.
