The State Teachers Retirement System of Ohio (STRS) board has approved a $1.84 billion benefits package that will boost retirement perks for educators and retirees, following a closely split 6-4 vote.
Under the plan, retirees who left the profession before June 1, 2021, will receive a 1.5% cost-of-living adjustment (COLA) beginning in July. Active teachers will also be able to retire slightly earlier. The required years of service for full retirement benefits will decrease from 33 to 32, while the threshold for reduced benefits will drop from 28 to 27 years. These benefit enhancements are temporary and will expire in 2030.
The vote revealed deep divisions among board members over the financial implications of the package. Opponents argued that committing such a large sum amid volatile market conditions was risky for the pension fund, which manages roughly $95 billion in assets but faces an annual negative cash flow of $4 billion—spending more on benefits than it receives in contributions.
Those voting against the measure included two financial professionals, a teacher, and a representative from the Ohio Department of Education and Workforce. Alison Lanza Falls, the state treasurer’s appointee to the board, said the decision was financially irresponsible. Board member Carol Correthers, a teacher who has served since 2009, expressed concern that the changes benefit only a specific group of retirees and teachers.
Supporters, including board chair Rudy Fichtenbaum and other elected members who have pushed for pension reforms, defended the move as a modest step to reward long-serving educators without compromising the system’s long-term stability. The plan was vetted by the retirement system’s actuarial staff before being brought to a vote.
“The board is carefully balancing the long-term stability of the system with its desire to implement benefit changes,” STRS said in a statement following the vote.
STRS Interim Executive Director Aaron Hood acknowledged the added financial strain, noting the system will now rely even more heavily on strong investment performance to maintain solvency.
The decision comes as STRS continues to navigate internal and external scrutiny. The retirement system has been at the center of controversy in recent years, including leadership changes, ethics investigations, legal action from the Ohio attorney general, and a board shift driven by reform advocates demanding greater transparency.
Meanwhile, the search for a permanent executive director is underway. The board will interview three finalists: Christina Elliott, STRS deputy director of member benefits; Greg Samorajski, head of Iowa’s public pension system; and Steven Toole, a former director of the North Carolina Retirement Systems.
