School Employees Retirement System says current contribution rates, COLA authority keep fund on 20-year path to full funding

Executive Director Richard Stensard of the School Employees Retirement System told the Ohio House Public Insurance and Pensions Committee on May 20 that the system’s current contribution structure and statutory authority over cost-of-living adjustments (COLAs) are sufficient to keep the pension plan on a 20-year amortization path to full funding.

Stensard, executive director of the School Employees Retirement System, said the fund manages roughly $19,600,000,000 in assets and has a funded ratio of 79%. “Engagement, transparency, accountability, and sustainability,” he said, listing the four principles that guide SERS operations. He said the system is projected to reach a 100% funded ratio within 20 years under current assumptions and contribution rates.

The presentation outlined membership and benefit characteristics to explain why SERS costs and benefits are modest relative to other state plans: the average active member salary is about $27,800 and the average annual retirement benefit is $16,775. Stensard said…