September 2020 OEA Retirement Systems Update
STRS Posts 3.14% Return for FY 2020
STRS has reported a total investment return of 3.14% for the fiscal year ending June 30, 2020. The return, while positive, fell below the assumed rate of return of 7.45%. Additionally, despite the positive return on investments, total assets fell during the year by about $1.8 billion due to negative cash flow. STRS made benefit payments of about $7.5 billion in fiscal 2020 exceeding total contributions and investment returns during the period.
In October, the Board’s actuary will present the results of the annual pension valuation report. The report will show the actuarial impact of the investment return as well as how other economic and demographic factors affected the funding status of the pension plan.
SERS Board Continues to Discuss Pension Sustainability
On Thursday, August 20, 2020 the SERS Board held an online meeting to continue discussions about potential benefit changes aimed at enhancing the long-term sustainability of the pension plan. All discussions are preliminary in nature and many would require a change in state law to take effect.
One area of discussion was the cost of living adjustment (COLA). COLA payments for SERS retirees have been frozen for the last three years. Beginning in 2021, the COLA is to be based inflation, using the Consumer Price Index (CPI-W), capped at 2.5%. However, state law gives the SERS Board authority to adjust COLA payments if its actuary determines such a change is necessary to preserve the fiscal integrity of the retirement system.
During the Board meeting, John Garrett of Cavanaugh MacDonald Consulting (the actuarial firm hired by the Board), provided information on how some other states handle COLA payments. Pension plans in several states tie COLA payments to the investment performance of the fund, increasing or decreasing amounts based on market returns. Several Board members expressed interest in this concept while noting that SERS should place an upper and lower limit on COLA payments.
Potential changes to service credit and final average salary were also discussed. Currently, under state law, SERS bases a year of service credit on at least 120 workdays. Board member Daniel Wilson expressed support for basing a year of service credit on 180 days. Such a change would lead to about 10% of current employees being reduced from a full year of service credit to a prorated amount. Changes to the calculation of final average salary from the three highest years to the five highest years or three highest consecutive years were also discussed. Changes to service credit or final average salary would require a change in statute and cannot be made by the SERS Board.
OPERS Announces 2021 COLA Payment
OPERS has announced the cost-of-living adjustments (COLA) payments that will be made to retirees in 2021. For those who retired on or after January 7, 2013, the COLA is based on the Consumer Price Index (CPI-W) compiled by the US Bureau of Labor Statistics. This is the same index that Social Security uses; however, the time periods used are different so the rate might not always match up. The OPERS COLA for 2021 is based on rate of inflation from June 2019 to June 2020–0.5%.
OPERS retirees who retired prior to January 7, 2013, were grandfathered in OPERS pension reform legislation, and continue to receive a 3% COLA.
Click here to download a copy of this September 2020 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.
February 2020 OEA Retirement Systems Update
OEA Endorses Andrew Smith for STRS Board
The OEA Board of Directors has endorsed Andrew Smith for the upcoming election for an active member seat on the STRS Board. Andrew is a school social worker in the Sheffield-Sheffield Lake City Schools. He is a dedicated association and community leader with 20 years of service in STRS.
In December, a screening committee made up of OEA members in STRS conducted interviews with three candidates for a possible endorsement. Andrew Smith was recommended based on his leadership, knowledge of the issues and passion for being an advocate for the retirement security of his fellow educators both active and retired.
Currently, possible candidates for the STRS Board are collecting signatures to qualify for the ballot. If there is a contested election, ballots will be mailed to active STRS members in early April. OEA will provide members with additional information about how to support OEA’s endorsed candidate Andrew Smith in this election.
OEA Endorses Beverly Woolridge for SERS Board
SERS is currently holding an election for a retiree seat on the SERS Board of Trustees. The OEA Board of Directors has endorsed Beverly Woolridge for election to the SERS Board. Beverly has 39 years of service with the Akron Public Schools and is a former member and leader of the Akron Association of Classified Professionals. She has previously served on the SERS Board from 2009-2013 as an active member and from 2015-2019 as a retiree member. An OEA screening committee of SERS members interviewed Beverly Woodridge and current Board Chair Catherine Moss and recommended Woolridge for endorsement.
SERS retiree members have been sent ballots to vote in the election. Votes must be received by March 2, 2020. OEA encourages support for Beverly Woolridge.
OPERS Announces Planned Health Care Changes
In January, the OPERS Board of Trustees voted to make several changes to the OPERS health care program. These changes will be effective beginning on January 1, 2022. Unlike pension benefits, health care benefits are guaranteed but subject to revision by the OPERS Board without a change in state law. The stated purpose of the changes is to extend the life of the health care fund which currently receives contributions because incoming revenue is needed to fund the OPERS pension benefits. OPERS had stated that the expected life of the health care trust fund prior to the change was only 11 years.
The biggest change for those under 65 years old is the discontinuation of a health care plan sponsored by OPERS. Instead, OPERS will partner with a service provider to help retirees find a plan. OPERS will provide a monthly allowance to help pay for coverage. The allowance percentage is determined by a member’s service credit and initial age when coverage began. The base amount will be $1,200 per month and will remain at that level for three years but could be adjusted afterward by the Board.
For Medicare coverage, OPERS will continue to offer the Medicare Connector to those age 65 and over who qualify for Medicare parts A and B. The biggest change is that the base allowance will be reduced from $450 a month to $350. All current retirees who have access to coverage will maintain it, however, all retirees and disability recipients will be subject to the allowance table.
More information about the 2022 changes is available on the OPERS website at www.opers.org
Click here to download a copy of this February 2020 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.
December 2019 OEA Retirement Systems Update
SERS Fills Employee-Member Vacancy
At its November Board meeting, the SERS Board elected Matthew King to fill a board vacancy for an open employee-member seat. King is the treasurer and chief fiscal officer at East Central Ohio Education Service Center. He has previously served as treasurer for the Barnesville Exempted Village School District and as an assistant auditor for the Ohio Auditor of State. King’s term for this seat will run through June 30, 2020. The same seat is up for election next year.
Additionally, members of the SERS Board will select someone to fill a vacancy for an open retiree-member seat on the Board. Three candidates have been selected to be interviewed for this vacancy. The candidates are Robert Hancock, Timothy Penton and Frank Weglarz. The Board will interview candidates and discuss their qualifications at its December meeting. The candidate who receives a majority vote of the Board will fill the open seat with a term running through June 30, 2021.
OPERS Board Considers Health Care Allowance Changes
The OPERS Board continues to consider changes in the health care plan that would take effect in 2022. At its November meeting, the Board heard a presentation from OPERS staff regarding future Medicare and pre-Medicare allowances for health care.
Regarding Medicare retirees, OPERS staff noted that the average balance of an OPERS retiree’s health reimbursement account is over $3,700. More than two-thirds of the Medicare eligible retirees are enrolled in a Medigap plan with premiums that range from $152-$240. Approximately 25% enroll in a Medicare Advantage plan with the most popular plan being the Humana Choice PPO with an average monthly premium of $155. OPERS staff is recommending
lowering the monthly base allowance for participants in the OPERS Medicare Connector from $450 to $350.
Regarding pre-Medicare retirees, the Board has been discussing converting to market-based coverage rather than continuing to sponsor health care coverage. Currently over 25,000 retirees are enrolled in OPERS-sponsored coverage. Most receive an allowance of 75% of the $1,306 premium, meaning they pay $327 a month. OPERS staff is recommending an initial base allowance of $1,200 that may decrease over time. It should be noted that premiums in Ohio range from $570-$1,235 with higher costs in rural counties.
The OPERS Board will continue its discussion on all components of health care in January in preparation for a vote early in 2020.
Click here to download a copy of this December 2019 Report to the OEA Board of Directors
October 2019 OEA Retirement Systems Update
STRS Shows Modest Improvement in Funding Status
At its October Board meeting, the STRS Board received the results of the annual actuarial valuation of the pension plan for fiscal year 2019. The report showed actuarial liabilities (the value of benefits owed to retirees and active employees) of more than $97.8 billion and assets of $74.4 billion. The result is $23.4 billion in unfunded liabilities and a funded ratio of 76.1%. This represents a slight improvement from the previous year when it was 75.5%. Likewise, the amortization period (the amount of time needed to pay off the unfunded liabilities) was reduced to 16.6 years. This period was 17.8 years according to the FY 2018 valuation.
STRS continues to work toward improved funding of the pension plan. Keeping pension benefits secure for the long term is in the interests of OEA members and this has required shared sacrifice. Active teachers have had to work longer, contribute more and see formula reductions, while retired teachers have been dealing with frozen cost-of-living adjustments. However, as financial conditions improve, OEA supports restoration of COLA benefits as well as a reduction in the employee contribution rate.
The STRS Board also received the actuarial valuation of the health care plan. That report showed that health care benefits are more than fully funded with a funding ratio of over 174%. However, this figure is based on design changes to the plan that include elimination of the Medicare Part B premium reimbursement and freezing the subsidy amount for non-Medicare retirees at 2020 levels. These changes have yet to be implemented and the STRS Board is expected to review health care plan design in February 2020.
SERS Board Receives Preliminary Funding Report
On Thursday, October 17, the SERS Board received a report from the actuarial firm of Cavanaugh Macdonald Consulting on the anticipated funding levels for the annual actuarial valuation. Based on the preliminary analysis, it appears that the funding ratio of the pension plan will be 71.0%; an increase of 0.3% from the prior year. The amortization period would decrease by one year to 25.
According to the SERS funding policy, if the funded ratio of the pension plan is between 70% and 80%, the Board has the discretion to allocate up to 0.5% of the employer contribution to the SERS Health Care Fund. However, based on a review of year-to-date and projected investment experience and other factors, the Board opted not to contribute additional funds to health care and dedicate the full employer contribution towards funding pension benefits.
OPERS Board Votes to Develop “Group D” for New Hires
On Wednesday, October 16, 2019, the OPERS Board of Trustees voted to have staff develop a legislative proposal for a new tier of pension benefits (“Group D”) for employees hired after January 1, 2022. As initially proposed, this new tier would include a reduced calculation of pension benefits, increased age and service requirements, an increased employee contribution and a reduced cost-of-living allowance.
OEA and four other labor organizations sent a joint letter to the OPERS Board expressing opposition to the proposal. However, the OPERS Board voted 7-4 to develop a legislative proposal creating the new tier of benefits. Board members Julie Albers, Randy Desposito, Tim Steitz and Steve Toth voted against the motion. All other Board members voted in favor. OPERS Executive Director Karen Carraher stated that staff does not plan to pursue legislation for another year. The implication was that OPERS staff will continue to refine the proposal and work with stakeholders before coming back to the Board with a final proposal.
Click here to download a copy of this October 2019 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.
Sept. 2019 OEA Retirement Systems Update
STRS Investment Returns Slightly Below Assumed Rate
STRS posted an investment return of 7.13% for fiscal year 2019 which ended on June 30, 2019.
This rate of return fell slightly below both the actuarial assumed rate (7.45%) and the total investment benchmark return of 7.30%.
The FY 2019 return followed two positive years of 9.57% in 2018 and 14.29% in 2017.
The total impact on the pension fund will be reported at the STRS Board’s October meeting with the annual actuarial valuation. This report takes into account investment returns, other economic factors and demographic changes such as retirement rates and mortality.
SERS Board Focuses on Sustainability of Pension and Health Care
During a Board retreat in July, the SERS Board focused its discussion on future sustainability of the pension plan and retiree health care benefits.
The sustainability of the pension plan is the primary goal of the SERS Board and discussions will focus on making sure the plan is in a position to withstand changes in member demographics, investment experience and economic pressures. Discussions on the topic will be ongoing with an initial focus on issues such as the SERS actuarial assumptions and risks presented by factors such as demographic changes in Ohio’s educational system.
Discussions on sustainability of health care benefits focused on a review of the SERS health care program over the last ten years. As SERS has made changes to health care benefits over that period of time to extend the longevity of the plan, changes to premium subsidy levels were identified as having the most significant impact. Currently, premium subsidies provide $95 million a year in benefits to retirees. 52% of premium subsidies go to non-Medicare retirees despite being only 12% of the enrollees due to the higher cost of coverage.
OPERS Board To Consider Changes to COLA, Pension and Health Care Benefits
The OPERS Board is considering a number of changes to pension and health care benefits that will be discussed in the coming months.
In order to reduce the unfunded liability of the pension plan, OPERS is considering changes to the cost-of-living adjustment (COLA) benefit for retirees. The proposal would result in a two-year freeze of the COLA for all retirees in 2022 and 2023 and delay future COLAs to two years after retirement for future retirees.
If recommended by the OPERS Board, these changes would require passage of legislation as well. Additionally, the OPERS Board is having initial discussions of creating a new tier of pension benefits for future employees, hired in 2022 or afterward.
Creation of a new “Group D” would also require passage of legislation. Changes could include changes in contribution rates, benefit and eligibility levels, and creation of retiree medical accounts. While discussions are preliminary in nature, OEA is concerned that creating a different tier of benefits for new hires may reduce their expected pension benefits without providing any discernable impact on the overall health of the pension system.
The OPERS Board has also discussed a number of proposals dealing with health care benefits. Changes are likely to include increased years of service required for pre-Medicare enrollment, replacing non-Medicare coverage with an open market model and reduced base allowances for all health care plans. Unlike changes to COLA and pension benefits, modifications to health care benefits are at the discretion of the OPERS Board and a vote could come as soon as November
Click here to download a copy of this September 2019 Report to the OEA Board of Directors
OEA Legal Services — Protecting Your Rights
The cost of hiring an attorney to protect employment rights or a personal legal matter should not be a deterrent to an OEA member.
Each year, the OEA-NEA Legal Services Program provides paid legal representation to members who are forced to take legal action in a matter relating to their job.
If attempts to resolve the situation through administrative procedures fail, an OEA member can contact their OEA Labor Relations Consultant to apply for Legal Services Program assistance.
If the application is approved, OEA will assign the case to an attorney in a law firm that specializes in education employee representation. Examples of cases that may qualify for coverage are contract termination, suspension or non-renewal, continuing contract rights, deprivation of a member’s rights, privileges or benefits provided by Ohio education laws, a local master contract, the individual member’s contract or the employer’s policy; demotion and/or reassignment; salary disputes; leaves of absence and/or reinstatement rights; and certification or licensing matters.
Local associations may qualify for assistance for contract enforcement; State Employment Relations Board representation; services related to bargaining or impasse, including interest arbitration; and for crisis situations, such as a strike or a bargaining election. Local associations also are reimbursed for most of the costs of grievance arbitration and impasse panels.
Representation Before State Agencies
OEA also represents member concerns before a variety of state boards and agencies, including the State Board of Education, Ohio Department of Education, Educator Standards Board, State Employment Relations Board, Ohio Department of DD, School Employee Health Care Board, and the three retirement systems to which OEA members belong—the State Teachers Retirement System (STRS), the School Employees Retirement System (SERS), and the Public Employees Retirement System (PERS).
Unfair Labor Practice
An unfair labor practice is a charge filed with the State Employment Relations Board (SERB) that alleges a violation of Chapter 4117. Such violations can include the following:
- Bad faith bargaining or refusal to bargain;
- Retaliation for association activity;
- Interference with the formation or administration of an association;
- A failure of the association in its duty to fairly represent all bargaining unit members; and,
- Refusal of the employer to process grievances, among other actions.
Click here to learn more. If you feel that you or your association has been the victim of an unfair labor practice, you should contact your Labor Relations Consultant, who will begin the process of assigning an OEA attorney to the case.
Weingarten Rights
Every OEA member is guaranteed the right to union representation during an investigatory interview conducted by his or her employer if the interview could in any way lead to discipline, including termination, or could affect the member’s personal or working conditions. In this situation, the member should request that an association representative or officer be present at the meeting. Click here to learn more.
Employee Liability Protection
If a member is confronted with a lawsuit over something that happens to a student while under the member’s supervision, the law says the school board must provide the member legal representation and protect him/her from financial loss. But if the school board threatens to renege on its responsibility, a member can count the Association for protection. Click here to learn more.
Attorney Referral Program
NEA/OEA have identified attorneys throughout the state who have agreed to handle certain personal legal matters at a substantially reduced rate. Click here to learn more.
NEA/OEA Attorney Referral Program
NEA/OEA have identified attorneys throughout the state who have agreed to handle certain personal legal matters at a substantially reduced rate
The NEA/OEA Attorney Referral Program provides members with legal advice on personal matters. Each member — including their spouse, domestic partner, and dependent children — are eligible for two free 30-minute consultation sessions during the calendar year.
Attorneys do not prepare draft or review documents during a consultation. However, if further legal help is appropriate, the NEA/OEA Attorney Referral Program can provide additional assistance at a 30% discounted rate.
The 30% discounted rate is made available for legal work performed in these five “core” areas:
- Real Estate
- Wills & Estates
- Domestic Relations
- Consumer Protection (including bankruptcy)
- Traffic Violations
Participating attorneys are located throughout the state; therefore, you are not limited to the attorneys closest to you. Download a list of participating attorneys by county.
* The discounted program rate does not apply to the defense of criminal violations (other than the traffic matters), as well as business dealings and tax matters.
Page Updated December 16, 2024
2023-2024 Treasurer’s Workshop Dates
The workshops are designed for new Local Treasurers as well as experienced treasurers who want a refresher. Other local officers are also welcome to attend. OEA Treasurer Mark Hill will facilitate the workshops. NOTE: Attendance at an OEA sanctioned Treasurer’s Workshop is a requirement for the OEA Fiscal Fitness Award.
Click here to download the statewide schedule (.pdf file).
| June 12, 2023 | CENTRAL Virtual Treasurers’ Workshop Novice Treasurer Training: 9:00 a.m. – 10:30 a.m. Experienced Treasurer Training: 10:45 a.m. – 12:00 p.m. Registration: www.centraloeanea.org |
| July 12, 2023 | ECOEA Treasurers’ Workshop – RG Drage Career Tech Center Treasurer Training: 8:00 a.m. – 9:15 a.m. Internet Security: 9:15 a.m. – 9:40 a.m. Registration: www.ecoea.ohea.us |
| July 13, 2023 | WOEA Treasurers’ Workshop – Dayton Metro Library – Main Novice Treasurer Training: 10:00 a.m. – 11:30 a.m. Experienced Treasurer Training: 12:00 p.m. – 1:00 p.m. Registration: www.woea.org |
| July 18, 2023 | NWOEA Treasurers’ Workshop – OEA Findlay Office Registration: 8:45 a.m. – 9:00 a.m. Treasurer Training: 9:00 a.m. – 11:00 a.m. Lunch: 11:00 a.m – 11:45 a.m. Registration: 2023 NWOEA Treasurer’s Workshop |
| July 19, 2023 | NEOEA Novice Treasurers’ Workshop – Hilton Garden Inn, Mayfield Village Novice Treasurer Training: 2:30 p.m. – 4:30 p.m. Register here: https://vireopay.net/transact/NEOEA/SLC2023 |
| July 20, 2023 | NEOEA Experienced Treasurers’ Workshop – Hilton Garden Inn, Mayfield Village Experienced Treasurer Training: 9:00 a.m. – 10:30 a.m. Register here: https://vireopay.net/transact/NEOEA/SLC2023 |
| July 27, 2023 | SEOEA Treasurers’ Workshop – OU Inn Registration/Continental Breakfast: 8:30 a.m. – 9:00 a.m. Novice Treasurer Training: 9:00 a.m. – 10:30 a.m. Experienced Treasurer Training: 10:30 a.m. – 12:00 p.m. Registration: Forms at www.seoea.ohea.us Due by July 7th to southeastoea@gmail.com or mail to Greg Potter, 4386 C H and D Road, Oak Hill, OH 45656 |
| August 2, 2023 | SWOEA Treasurers’ Workshop (with Virtual option) – SWOEA Office Experienced Treasurer Training: 1:00 p.m. – 2:00 p.m. Novice Treasurer Training: 2:30 p.m. – 4:00 p.m. Registration: Veria Maxberry at sec-swoea@cinci.rr.com |
| August 3, 2023 | EOEA Virtual Treasurers’ Workshop (OEA will provide Zoom) Novice Treasurer Training: 1:00 p.m. – 2:30 p.m. Experienced Treasurer Training 2:45 p.m. – 3:45 p.m. Registration: Jack Boyd at (740) 453-2186 or jboyd.eoea@gmail.com |
| August 8, 2023 | NCOEA Virtual Treasurers’ Workshop Novice Treasurer Training: 9:00 a.m. – 10:30 a.m. Experienced Treasurer Training: 11:00 a.m. – 12:00 p.m. Registration: Becky Cashell at ncoeabecky@gmail.com |
Local Presidents’ Training — June 18-19th
All elected presidents of OEA locals, including those elected for the 2019-2020 school year, are invited to participate in a special training program June 18-19 at the Columbus Renaissance Hotel, 50 N. 3rd Street, Columbus OH 43215.
This program, led by a diverse cadre of local presidents and OEA staff, will provide participants the opportunity to learn about the roles and responsibilities of a local president, the essential knowledge and skills needed to be successful, as well as connections with others serving in similar roles in Ohio locals of all types and sizes.
This training is planned around the NEA Leadership Competencies and is focused on knowledge and skills related to Governance & Leadership and Organizing. Participants will receive OEA’s Local Presidents’ Handbook to support them in their work to grow and strengthen their local unions.
This program will begin at the conclusion of the OEA Summer Academy with a reception and dinner at 5:00 p.m. on June 18 and conclude at 4:00 p.m. on June 19. OEA will cover the cost of a hotel room for participants traveling from outside of Columbus.
There is no registration fee; however, space is limited, and pre-registration (below) is required.
OEA Educational Foundation
The work of the Ohio Educational Foundation is to fund initiatives that enhance student learning, student achievement, and well being, as well as promote social justice. Its Board of Directors is pleased to introduce four new funding opportunities available to all OEA members:
- Diversity Grant
- Innovation Grant
- Whisper Grants
- Make-A-Wish® / Adopt-A-Wish®
Grant applications may be submitted using the new OEA online form tool or printed and then mailed/email to the addresses within the application. Click HERE for more details!