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Retired public school teachers will receive a one-time 3 percent cost-of-living adjustment for the first time in at least five years.
The State Teachers Retirement System of Ohio board approved the COLA, starting July 1, for those who retired before July 1, 2018, said Nick Treneff, STRS spokesman. The monthly increase will take effect on a person's retirement anniversary.
Members who retired July 1, 2018, or later are not eligible for the COLA.
The board initially planned to consider a 2 percent increase, but its actuary said a 3 percent increase was affordable, Treneff said.
Cheiron of McLean, Va., the board's actuary, "determined that the changes will not materially impair the fiscal integrity of the system," Treneff said.
"This is just the first step in the right direction," Robert A. McFee, board chairman said.
The board will continue to keep the long-term sustainability of the pension fund as its primary goal, but also will look to make future benefit enhancements for active and retired teachers as the financial condition of the fund permits, McFee said.
The pension has about $98 billion in assets.
About 500,000 active and retired teachers are in the system.
STRS reduced its COLA for retired teachers from 3 to 2 percent in 2012. The 2 percent was cut in subsequent years until it was eliminated in 2017.
Those who retired in 2013 or later never received a COLA.
The four other statewide public employee pension funds provided COLA over the years.
The board approved a policy in 2012 to require active teachers to be at least 60 years of age with 35 years of service to be eligible for a full pension, effective 2026. Before that, 30 years of service was all that was required for a full pension.
The STRS board agreed at a Thursday meeting to eliminate the age requirement, starting Aug. 1, 2023.
Julie Sellers, president of the Cincinnati Federation of Teachers, and Elizabeth Jones, president of the Cincinnati Federation of Teachers Retired, who are the Ohio Federation of Teachers endorsed candidates for seats on the STRS board, wrote in a joint statement that "a one-time COLA is a step in the right direction, but falls short of what STRS retirees need and deserve."
They added: "Likewise, elimination of the age threshold for full retirement benefits is a positive change, but the result is that it's still harder to retire today than it was 10 years ago."
The two called for the return of annual COLA and full benefits after 30 years of service.