Thoughtful governance and strong partnerships mean better outcomes for STRS beneficiaries.
Pension solvency is the result of building alliances with over a dozen constituency groups.
Improved internal processes gained STRS more effective enterprise risk management, better staff development, flat budgets, and improved investments.
By third-party measures, the current board has a very high level of policy effectiveness.
Bob has worked with this board to:
• Design a pension reform plan that moved the fund from actuarially unsustainable to 70% funded while avoiding state actions that unnecessarily punished retirees in other states. STRS coordinated constituency groups to achieve passage of the necessary legislation in an unfriendly political environment.
• Broaden the STRS Ohio investment toolbox to improve investment returns. STRS Ohio now has one of the highest 5-year risk-adjusted investment returns of any major North American pension plan.
• Focus on improved systems to better identify, measure, and risks across the entire enterprise.
• Improve governance practices and efficiency through staff leadership development, succession planning, and board member education.
• Oversee efficiencies and improvements that have STRS member services ranked #1 world wide. Costs are declining for STRS while the global average cost is rising. (re: CEM Benchmarking and others)
• Develop an actuarially sound long-term funding policy. STRS policy contains an annual dashboard that includes innovative economic environment metrics. These will help future boards avoid poor decisions anchored to business cycle events. Such anchoring is a persistent problem in the creation of all human policy. Addressing this risk in funding policy is unique in the pension world and extremely valuable.
(re: Callan Assoc., Segal Actuarial, International Monetary Fund, and others)
This Board will continue the above -- as well as:
• Assuring a health care program that maintains the STRS Health Care Stabilization Fund as a continuing resource to reduce retiree health care costs.
• Completing the STRS 5-year policy and actuarial experience review.
• Pursuing continued improvements in the investment toolbox. We can always do better. (~80% of benfits payments are the result of investment returns.)
• Causing STRS to more efficiently communicate and work with stakeholder groups and other Ohio pension systems to encourage legislative policies that benefit STRS and other Ohio public retirees.
Re-elect Bob Stein to the STRS Board