Ohio teachers' pension fund to ask for rate hike

The State Teachers Retirement System of Ohio will ask state lawmakers to increase the contribution rates that school districts pay into the pension for teachers.

System spokesman Nick Treneff said the teachers' pension system has yet to discuss details, such as how much of an increase it wants. "We aren't going to get anything if we don't ask," he said.

Currently, school districts contribute 14% of a teacher's salary to the pension system. Teachers kick in another 14%.

The employer contribution rate hasn't changed since the mid-1980s, Treneff said. A rate increase would be paid by taxpayers in more than 600 school districts across Ohio.

The move comes as the Ohio Police & Fire Pension System is heavily lobbying for a bump in the rates paid by local governments for police and firefighters.

Public employees in Ohio do not participate in Social Security so the state pension systems are their main retirement funds.

State Teachers Retirement System of Ohio is the second largest of the state's five pension systems with roughly $98 billion invested on behalf of 500,000 teachers, retirees and beneficiaries. The system's 11-member board is a combination of unpaid elected and appointed trustees. Three new trustees won election earlier this year.

The system has been grappling with controversies:

Retirees are unhappy that the system eliminated their annual cost of living adjustment in April 2017 and say that the board's recent approval of a one-time 3% boost falls short of what's needed.

The Ohio Retired Teachers Association raised $75,000 for a deep dive into what the association viewed as mismanagement, high investment fees and misinformation.

A faction led by board member Wade Steen argued that the system's investment staff miscalculated their performance bonus pay and that information is being withheld from board members.