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STRS Board Suspends COLA
The State Teachers Retirement System (STRS) Board of Trustees voted last Thursday to
stop any further cost-of-living adjustments (COLA) after July, a move meant to shore up
long-term finances and comply with state requirements for a plan to reduce liabilities.
The most recent five-year study, completed earlier this year, is what prompted the COLA
suspension. In such studies, pension funds review how their long-term assumptions
compare to actual events. After its recent study, STRS decided it needed to lower its
projections for long-term average annual investment returns from 7.75 percent to 7.45
percent. The pension fund also approved new mortality projections to reflect increasing
lifespans and reduced its assumptions about payroll growth.
Those assumption changes put STRS on track to pay down its unfunded liabilities within
about 57 years. State law requires systems to devise new plans anytime they’re outside of
30 years, and STRS own funding policy calls for it to be able to pay down liabilities in less
than 30 years.
Gifted Self-Report Due on July 15
The annual Self Report on Identification and Services for Students Who are Gifted is
now available. District superintendents were provided a link to the survey via email on
Thursday, April 13. This
required reportprovides information that the Department uses to
develop resources and professional development.
The report is due no later than July 15.
A PDF version for planning purposes only is
available
here.