OEA 2024 Election Guide
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September 2024 OEA Retirement Systems Update
SERS Board Approves 2.5% COLA for 2025
On Thursday, September 19, 2024, the SERS Board unanimously approved a 2.5% cost-of-living allowance (COLA) for eligible SERS retirees. This COLA amount is the maximum allowed under state law for SERS. The 2.5% COLA will be paid to SERS retirees in calendar year 2025.
Statute allows SERS to provide a cost-of-living allowance based on the Consumer Price Index over a twelve-month period (June to June). That figure was 2.9%. However, state law does cap the COLA amount at 2.5% and further notes that COLA payments are subject to further reduction or elimination if such payments would have a material impact on the solvency or health of the retirement plan. SERS reported investment earnings of 9.61% over the past fiscal year and an improving funded status. Given these factors, the Board voted in support of a 2.5% COLA.
In further action, the Board elected to continue to not allocate any of the 14% employer contribution to the health care fund. The health care fund has a solvency of over 40 years and receives an employer surcharge of 1.5% of payroll. The Board determined that the full employer contribution was needed for pension benefits which are statutorily required as opposed to health care which is discretionary.
Sponsors of GPO-WEP Repeal Push for Floor Vote
Work continues to try to fully repeal the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). These are provisions of federal law that unfairly punish public service by reducing earned Social Security benefits or spousal and survivor benefits when a public sector retiree collects a pension from a jurisdiction (such as Ohio) where they did not contribute to Social Security.
U.S. Senator Sherrod Brown (D-Ohio) is a lead sponsor of the Social Security Fairness Act (S. 597) which would fully repeal GPO-WEP. This legislation now boasts 62 bipartisan cosponsors—a filibuster proof majority of the Senate. Senator Brown and OEA have called upon Senate leadership to bring the bill to the floor for a vote.
H.R. 82 is companion legislation in the U.S. House of Representatives. The bill has 327 bipartisan cosponsors. The sponsors of the bill have started a discharge petition to try to bring the bill to the floor for a vote. Such a petition would require 218 signatures, a majority of Congress. OEA is calling upon members of the Ohio Congressional delegation to sign the petition and support the bill. You can contact your legislator and urge their support by clicking here to take action.
Health Care Premiums Remain Flat for Most STRS Retirees
During its August meeting, the STRS Board approved 2025 premiums for its health care plan offerings. More than 90% of current enrollees will have no premium increase. The monthly premium for career employees is $141 for those in Medicare and $319 for those under 65 years old.
In other notes from the August meeting, STRS posted a 10.5% investment return for FY 2024. The Board’s investment consultant noted this continues strong returns for STRS as its return of 8.8% over the past five years ranked in the top 8% of public pension funds in the United States.
Additionally, the Board elected Michael Harkness to fill a vacancy for active employees on the Board. The vacancy was a result of the retirement of Steven Foreman. Mr. Harkness is an intervention specialist from Akron and serves as Vice President of the Akron Education Association.
Click here to download a copy of this September 2024 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.
NEA College Benefit Program
NEA Member Benefits is excited to offer members and their families access to the NEA College Benefits Program in partnership with Edvance. This member benefit gives you and your family access to a growing number of regionally accredited1 schools and programs to meet your schedule, career goals, AND budgets.
- Affordable Tuition and Union Discounts – Up to 50% off tuition
- Transfer-friendly schools help you get credit for your previous courses
- 100% online, career-focused Certificate, Associate, & Bachelor’s degree programs
Setting up an account is not necessary to get basic information about the program. When the site opens, DO NOT CLICK ON “LEARN MORE”. Instead, scroll down through the page to see the available colleges and answers to many frequently asked questions.
1As the most common and widely-recognized type of institutional accreditation, credits earned from regionally accredited schools can easily transfer to other institutions maximizing a student’s opportunity to earn credit for previous courses.
Eligible NEA members include active members in good standing and their family. Family includes a member’s spouse or domestic partner, children or dependents, and grandchildren.
2024 OEA Bargaining Boot Camp
OEA’s Bargaining Boot Camp is an intensive, team-based training offers the opportunity to learn about, and incorporate, essential organizing and bargaining concepts into your local association’s bargaining preparation. Bargaining teams will walk away from this weekend with dozens of tools they can immediately use to prepare for a successful contract campaign including local-specific financial and health insurance information and a core contract language assessment. This year’s training will include both full team training and separate tracks for new participants and those that have previously attended a boot camp.
Check-in for each boot camp will begin at 9:00 a.m. on Saturday and the program will begin promptly at 9:30 a.m. Participants should plan to attend the entire day on Saturday as the program will not end until approximately 8:00 p.m. The boot camp will reconvene at 8:30 a.m. on Sunday and will conclude by 2:00 p.m. OEA will cover the cost of all on-site meals, materials, and single occupancy lodging on Saturday night for each participant.
To ensure maximum participation each boot camp will be limited to a total of 75 participants, including each local’s OEA Labor Relations Consultant (LRC). Acceptance into a boot camp will be based on two factors:
- Willingness and availability of a local’s entire bargaining team to participate in the boot camp; and,
- Expiration of the local’s collective bargaining agreement during the 2024-2025 school year.
Boot camps will be held in four geographic areas of the state on the following dates. A local can apply to attend any of the offerings.
**ALL BOOTCAMPS ARE FULL BOOKED** Watch this webpage for 2025 Bargaining Boot Camps applications beginning Summer 2025.
| DATE | LOCATION | DEADLINE |
| October 26-27 |
Marriott Cincinnati Northeast (Southwest) |
September 20 |
| November 2-3 |
Four Points Cleveland-Eastlake (Northeast) |
September 27 |
| November 9-10 |
Hilton Polaris (Central) |
October 4 |
| November 23-24 | Hilton Garden Inn Perrysburg (Northwest) | October 18 |
Registration will be completed by the “team leader” registering their local’s entire team. To complete the registration, the team leader will need confirmation from each participant that they are willing to attend and provide the following information:
- Member’s Name
- Home Email Address
- Contact Phone number
- Any known food allergies or dietary restrictions
- Whether each participant has participated in a previous boot camp
Click Here to download an information sheet to use with team members.
An email regarding your application status will be sent to the team leader approximately three weeks prior to the scheduled Boot Camp.
Questions? Contact Eric Watson-Urban, Collective Bargaining, and Research Consultant at urbane@ohea.org or Kelli Shealy, Research Technician at shealyk@ohea.org.
This program is offered by the OEA Education Policy Research & Member Advocacy department.
Page Updated: October 17, 2024
June 2024 OEA Retirement Systems Update
Field Hearing on GPO-WEP Repeal Offers Opportunity for Advocacy
U.S. Senator Sherrod Brown has announced a field hearing on the Social Security Fairness Act (S. 597). This is vital legislation Senator Brown has sponsored that would fully repeal the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). These provisions of federal law unfairly punish public service by reducing the earned Social Security benefits of retirees who collect a public pension in states like Ohio.
The Senate Finance Subcommittee on Social Security, Pensions, and Family Policy hearing will be held on Friday, June 7, 2024, at the Columbus Firefighters IAFF Local 67 Union Hall (379 W Broad St, Columbus, OH 43215). The hearing is scheduled from 10:00 a.m. to noon. OEA is strongly encouraging members to attend the hearing, click here to let us know you plan to attend the hearing.
OEA is also asking members to submit testimony in support of the legislation to repeal GPO and WEP to the subcommittee. Any individual or organization wanting to present their views for inclusion in the hearing record should submit in a Word document, a single-spaced statement. No other file type will be accepted for inclusion. Title and date of the hearing, and the full name and address of the individual or organization must appear on the first page of the statement. Statements must be received no later than two weeks following the conclusion of the hearing.
Statements can be emailed to: Statementsfortherecord@finance.senate.gov
The NEA website has additional resources on the issue. Click here to view the toolkit on GPO and WEP.
STRS Board Update: AG Files Suit Against Two STRS Board Members, Board Elects New Chair and Vice Chair
Attorney General Dave Yost has filed a lawsuit seeking to remove two members of the STRS Board following serious allegations about their potential involvement in trying to promote risky investment schemes. In a recent message to members, OEA President Scott DiMauro stated, “OEA is very concerned about allegations in the whistle-blower documents and in the state’s lawsuit. We look forward to learning the full truth of the matter as the AG’s investigation moves forward.”
Meanwhile, the STRS Board voted 6-5 to replace the Chair and Vice Chair of the Board. On Wednesday, May 15, 2023, after several motions and debate, the STRS Board voted to create a new board policy allowing for the removal of the Chair and Vice Chair with a majority vote. Subsequently, Dale Price and Carol Correthers were removed as Chair and Vice Chair, respectively. Rudy Fichtenbaum was elected Chair and Elizabeth Jones was elected Vice Chair. Those terms are to run through August.
In other Board news, Michelle Flanigan was elected to a four-year term representing contributing members of the system. Flanigan defeated OEA-recommended candidate Sandy Smith Fischer with approximately 85% of the vote. Flanigan’s term will begin on September 1, 2024.
STRS Investigates COLA and Inflation Protection
At its regular May meeting, the STRS Board passed a motion to direct staff to gather information about potential benefit changes. The Board directed staff to explore the feasibility of providing a one-time supplemental benefit to retirees in December 2024, serving as a form of inflation protection. Additionally, the motion called for an accelerated review of the upcoming actuarial valuation. The Board hopes to hear from the actuary in November as to whether funds would be available to offer some amount of a one-time cost-of-living allowance (COLA) for the 2026 fiscal year.
Actuarial Valuation Shows OPERS 84% Funded
OPERS ended 2023 with a funded ratio of 84% for the defined benefit pension plan. Further, the amortization period, or amount of time OPERS is projected to pay off its unfunded liabilities based on current assumptions, was 15 years. State law requires this funding period to be no greater than 30 years.
The Board’s actuary, Gabriel, Roeder, Smith & Co., noted that the funded ratio remained the same as the previous year, while the amortization period declined by one year. The investment return on a market-value basis was 11.06%, which was greater than the assumed rate of 6.9%. Investment gains and losses are smoothed into the valuation over a four-year period.
Click here to download a copy of this June 2024 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.
May 2024 OEA Retirement Systems Update
ORSC Discusses Forthcoming SERS Actuarial Audit, Report on State Retirement Systems
On April 11, 2024, the Ohio Retirement Study Council (ORSC) met and discussed a number of items. Based on a subcommittee recommendation, the full council approved a request for proposals for an actuarial audit of the School Employees Retirement System (SERS). State law calls for this type of audit on all state retirement systems once every 10 years. Firms have until June to respond to the RFP.
Additionally, the ORSC released a historical review of all five statewide pension systems. The report compares the fiscal health of the systems since 1998. The report, which was completed by ORSC staff, contains several recommendations for legislative changes: ensuring that funding for discretionary benefits like health care remains secondary to full funding of pension benefits; standardizing Board authority for all systems to make changes in eligibility and benefits; and implementing an amortization period shorter than the current 30-year standard.
While the report offers helpful historical context and a detailed comparison of the five retirement systems, OEA has a different view of some of the legislative recommendations. Requiring a shorter amortization period coupled with broader board authority over benefits could have the effect of reducing member benefits. The more conservative requirement of a shorter funding period should not be considered. Currently, three of the five systems (STRS, OPERS, and Police and Fire) are seeking legislation to increase employer contributions. This is being sought to better provide more financial stability and aid in restoring benefits such as reducing retirement eligibility requirements and inflation protection for STRS members. Ohio’s public employers pay a low rate when compared to other states that do not participate in Social Security and the employer contribution rate has remained unchanged for decades.
It should be noted that none of the recommendations of the ORSC report have been introduced in any pending legislation. The full report can be viewed here.
Appeals Court Ruling Results in Abrupt End to STRS Board Meeting
On Thursday, April 18, 2024, the 10th District Court of Appeals ruled that Wade Steen had been improperly removed by Governor DeWine and ordered for him to be reinstated. This happened during a scheduled meeting of the STRS Board. Steen’s replacement, Brian Perera, attended the first part of the meeting. However, upon return from a midday executive session, Steen retook the seat.
DeWine removed Steen about a year ago, citing his attendance record and meetings and perceived advocacy for specific investment managers. DeWine appointed G. Brent Bishop in Steen’s place, but Bishop later resigned prompting DeWine to appoint Perera, previously budget director for the Ohio Senate and lobbyist for the Ohio State University. The Governor’s office has urged an appeal of the Court’s ruling, although DeWine was dropped as a party in the suit and cannot initiate the appeal himself.
Upon resumption of the STRS Board meeting, and after a series of motions, Steen was ceremonially re-sworn to his post. After the Board addressed routine agenda items, Chair Dale Price attempted to adjourn the meeting. This was met with objection as there were several items remaining on the agenda. Price brought the meeting back to order and called for a 15-minute recess. However, Price did not return, and it was announced by counsel that the meeting had been adjourned.
Subsequently, STRS released a statement from Price which said in part: “Counsel had not yet had the opportunity to review the opinion and consider its implications. When it became apparent that I was unable to conduct the meeting in an efficient and effective manner, I decided to conduct the necessary business and adjourn the meeting. I plan to have the Retirement Board consider the remaining items from today’s agenda at the regularly scheduled May Board meeting.”
Click here to download a copy of this May 2024 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.
Careers in Higher Education
Use the links below to find open opportunities at High Education institutions.
Let’s get the facts straight on public school funding
By Scott DiMauro, Ohio Education Association President
As a high school social studies teacher, I was always struck by what the then-future US President John Adams said during the criminal trial following the Boston Massacre: “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
The fact is that Ohio’s public schools serve nearly 90 percent of students in our state. And, despite recent claims that attempt to twist the truth around public school funding in Ohio, the evidence is clear: More work must be done to finally fully and fairly fund our public schools, so that every child – regardless of where they live, what they look like, or how much money their parents make – can receive the excellent education they deserve.
The fact is that Ohio’s public schools are funded from the same line item in the state budget as private school vouchers. The last state budget did provide “record funding” for that line item, as indeed, anytime there’s an increase, that would set a new record. As noted in recent news coverage, the Ohio Department of Education and Workforce doesn’t yet know how much the state’s new universal voucher program will cost this year. But, with the explosion in the number of wealthier families taking public taxpayer dollars to pay for private school tuition for students who were already attending private schools in the first place, it is clear the state’s spending on the universal voucher program will far exceed the original budget estimates.
So, the fact is, when it comes time to pass the next state budget in 2025, that leaves less money in that line item for Ohio’s public schools. Exactly how much less and how will that impact public schools? It’s unclear. But, the uncertainty around those questions is causing school districts across the state to hold onto larger reserves to weather future state funding shortfalls, and in some cases, has prevented districts from feeling comfortable spending down the soon-to-expire federal pandemic-relief money that is currently inflating some of the figures. In the end, that uncertainty is hurting our students, as money that should be used to recruit and retain public school educators, address students’ mental health needs, and make up for lost ground remains unspent.
The Fair School Funding Plan, when fully implemented with updated formula components, should remove that uncertainty. Based on years of work and input from stakeholders across the board, the Fair School Funding Plan, which the state began phasing in in the FY 2022-23 budget, is meant to accurately account for how much it costs to educate a child and how much a local community can actually afford to pay toward that. And, it provides a predictable funding model, so school districts can accurately plan ahead. If the Fair School Funding Plan is fully phased in in the next state budget, as it was always intended to be, Ohio would finally have a constitutional school funding formula for the first time since the state supreme court started telling the legislature to stop chronically underfunding our public schools and truly fix the problems back in 1997.
Our lawmakers need to fulfill Ohio’s promise to our kids and commit to fully adopting the Fair School Funding Plan. They need to ensure that public tax dollars spent on private school vouchers come with the same academic and financial accountability as the dollars we spend on our public schools. They need to focus on providing the supports and resources our students need to succeed in a 21st century economy, because in Ohio, public education matters.
February 2024 OEA Retirement Systems Update
STRS Board Maintains Current Economic Assumptions
During its February meeting, the STRS Board elected to maintain the current economic assumptions for the upcoming actuarial valuation. The Board’s actuarial advisor, Cheiron,
recommended maintaining the assumptions of a 7.0% discount rate, 2.5% for inflation, and 3.0% for payroll growth.
The discount rate is similar to an expected rate of return. This is a key assumption because it helps to project the cost of future liabilities and the rate at which they can be paid off. There was discussion among the Board of increasing the discount rate to 7.25%. This change would have reduced the unfunded liabilities of the system by approximately $2.5 billion. However, the actuarial consultant reported that the majority of public pension plans have a 7.0% assumption, that the trend is lowering investment assumptions, and that only one plan in the last 10 years had raised their assumption. Further, the Board’s investment consultant has a 10-year projected rate of return of 7.04% and other investment projections are trending down amid economic uncertainty.
These economic assumptions will be used, not only for the actuarial valuation at the end of the fiscal year, but also in a March Board discussion about possible benefit changes. State law allows the Board to make certain plan changes if the Board’s actuary determines such changes do not “materially impair the fiscal integrity” of the system. Last year, Cheiron developed a method of providing the Board with a benefit enhancement budget. At that time the budget was $0. However, in that instance, the actuary determined that a de minimus change could be made. This resulted in the Board electing a 1% cost-of living adjustment (COLA) and a five-year period of retirement eligibility with 34 years of service.
STRS Seats New Board Member Amid Continued Legal Battle
Governor Mike DeWine has named Brian Perera to the STRS Board replacing G. Brent Bishop who resigned earlier this month. Mr. Perera is a consultant, former lobbyist for Ohio State University, and former Finance Director for the Ohio Senate. Mr. Bishop was initially appointed to the seat after Governor DeWine removed Wade Steen, his prior appointee, from the Board. Mr. Steen’s removal is the subject of an ongoing lawsuit about the Governor’s authority to remove his appointed Board members.
Recently, 10th District Court of Appeals Magistrate Thomas Scholl stated that the Governor lacked legal authority to remove Steen. However, that decision is not final or binding. It now goes to a three-judge panel to adopt or reject it. That panel’s decision could also be appealed to the Ohio Supreme Court. The Attorney General advised STRS to seat Mr. Perera on the Board and he participated as a voting member in the February meeting.
The STRS Board also announced that Executive Director Bill Neville will remain on leave until at least May. Neville was placed on leave in November in response to an anonymous letter alleging harassment and threats. Attorney General Dave Yost hired outside attorneys to investigate the matter. A statement by STRS said the Board reviewed the investigation’s summary before voting to keep Neville on leave. Lynn Hoover, Chief Financial Officer, will continue as acting Executive Director
SERS Board Discusses Definition of Compensation
The SERS Board is discussing potential changes to the pension contribution compensation definition. The current definition was originally adopted in the 1980s and has been largely
unchanged. However, compensation practices used by employers have changed with more bonuses and lump sum payments being used—not just standard salaries and wages. Some of
these payments are subject to pension contributions, others are not, and it can be unclear which is the case.
This matters because what types of pay meet the definition of compensation for SERS determines how much funding goes towards members’ pension benefits and ultimately determines how much they receive in retirement. The Board’s expressed goals for the discussion are to identify which payments should be pensionable, clarify the rules so they are easier to understand and administer, and to understand how decisions might impact the pension plan, employers, and members of SERS.
On Thursday, February 15, the SERS held a special meeting to discuss the issue with stakeholder groups. OEA, other labor unions, and employer groups were represented. There was consensus among the labor groups that the current definitions are murky and that as bonuses and lump sum payments become more prevalent, it would have real and lasting impact on members in retirement if left unchanged. OEA Secretary-Treasurer Mark Hill made the point that the purpose of a pension is to replace a portion of your earnings you had while employed. If the pension benefits do not reflect your true income during employment, it undermines members’ economic security.
The Board discussions on this matter are ongoing. Depending on what changes are approved by the Board, they might require changes in administrative rules or legislation to be passed.
OPERS Posts Positive Investment Returns for FY 2023
Preliminary investment reports for 2023 found that OPERS had double-digit investment returns which exceeded their assumed rate of return. OPERS reported a preliminary return of 11.34% for the defined benefit pension plan. This return is above the assumed rate of 6.90% and beat the benchmark return by 0.87%. The OPERS health care fund is invested with a different asset allocation and has a lower assumed rate of return (6.0%). The health care fund posted a preliminary return of 13.96% for the year, beating the benchmark by 0.32%. All returns are reported net of fees
Click here to download a copy of this February 2024 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.
December 2023 OEA Retirement Systems Update
SERS Board Finalizes Anti-Spiking Provision
The SERS Board has approved the final piece of an anti-spiking provision known as the Contribution Based Benefit Cap (CBBC). The state budget bill, House Bill 33, included the provision that impacts future SERS retirees. The CBBC will go into effect on August 1, 2024. It will only affect a small fraction of retirees who have abnormally large increases in salary that are not supported by retirement contributions over their career. When a member’s final average salary in their pension calculation is well above what would be expected from normal salary increases, their benefits are effectively subsidized by other members of the system.
The final piece of the CBBC puzzle was the SERS Board adopting a “factor” used in its calculation. The CBBC calculation annuitizes member/employer contributions and then multiplies it by a factor that will be identified by the SERS Board. A member’s pension is capped at the lower of the formula benefit or the CBBC benefit. The SERS Board adopted a factor of 6.25. Analysis of past retirement data indicates that only a small number of future retirees will be impacted by this change. Of the nearly 3,000 retirements from 2022 and 2023, only eight would have seen a reduction had the CBBC been in place.
STRS Executive Director on Leave Amid Investigation
On Friday, November 17, 2023, the STRS Board voted to put Executive Director Bill Neville on leave pending an investigation by an outside council appointed by Ohio Attorney General Dave Yost. The investigation will look into accusations from an anonymous letter from STRS staff alleging a pattern of harassment and threats of violence.
Lynn Hoover, who serves as Chief Financial Officer for STRS, will serve as acting executive director during the investigation.
Click here to download a copy of this December 2023 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.