STOP SERS Recommendation to ORSC for Retirement Changes effective Aug. 1, 2015

The Board will recommend to the ORSC at its September 9, 2009, meeting the following changes, effective for members retiring on or after August 1, 2015:

- to retire with no actuarial reduction to one’s retirement allowance, a member must be age 67 with 10 years of service or age 57 with 30 years of service;

- a member may retire early at age 62 with 10 years of service or age 60 with 25 years of service;

- f a member retires early, base early retirement reductions on actuarial reductions from the lesser of age 67 or possible attainment of 30 years of service.

To minimize the possibility of making unnecessary benefit changes and increasing member and employer contributions, SERS’ Board opted to periodically examine its 30-year funding responsibility and recommend benefit or contribution changes as needed. Should the recommended retirement eligibility changes for members retiring on or after August 1, 2015 fail to keep SERS within the 30-year funding window, the Board will consider other changes such as reducing cost of living adjustments and contribution increases for members and employers. The Board also understood that it could look at the costs of the Health Care program, if needed. This tiered approach addressed concerns from SERS’ advocacy groups that overreacting to the present funding situation could adversely affect members and retirees for many years.

Even before the current financial crisis began, SERS’ Board took action to keep the pension fund stable. SERS was the only Ohio public pension system to address pension design changes necessary to offset increased life expectancy when it introduced S.B. 148 in 2007 and advocated for its passage.