Historical Analysis
Highlights of Ohio STRS assets, liabilities, and other important funding metrics over the last two decades.
Funding Status
The funded ratio is calculated by dividing the value of plan assets by liabilities. When “Actuarial Value” is selected the actuarially smoothed assets are used. When “Market Value” is selected the market value of those assets are used. The difference between plan assets and liabilities is the unfunded accrued liability (UAL). Again, when “Actuarial Value” is selected the actuarially smoothed assets are used. When “Market Value” is selected the market value of those assets are used.
This chart also shows the difference between plan assets and liabilities–looking at the difference between those assets and liabilities (UAL).When “Actuarial Value” is selected the actuarially smoothed assets are used. When “Market Value” is selected the market value of those assets are used.
Pension Debt Drivers
What is driving STRS Debt? (2001 to 2022)
- Negative Amortization has resulted in interest on STRS debt exceeding the actual debt payments (negative amortization), adding $14.48 billion in unfunded liabilities.
- Changes to Actuarial Methods & Assumptions revealed $11.92 billion in previously unrecognized unfunded liabilities.
- Investment Performance below assumption has added $8.83 billion to unfunded liabilities.
- Deviations from Demographics Assumptions exposed $5.85 billion in additional unfunded liabilities due to demographic experience not meeting expectations.
- Other unclassified changes to STRS over the last several decades have added $0.45 billion in unfunded liabilities.
- Benefit Changes reduced unfunded liabilities by $-25.72 billion.
- Net Change, from 2001 to 2022, unfunded liabilities increased by $15.8 billion.
Unpaid Interest
Amortization Payments
Assets & Returns
Investment Returns
The chart below compares assumed returns with market, actuarial, and geometric rolling returns.
Asset Allocation
- Fixed Income: Government securities, corporate bonds, mortgage-backed securities, asset backed securities, etc.
- Public Equities: Publicly reported and traded stocks.
- Private Equity: Investments in funds managed by private firms such as Blackrock, StateStreet, and The Vanguard Group.
- Other Alternatives: Hedge funds, commodities, and other investments.
- Real Estate: Investments in REITs and other real estate funds.
- Cash: Cash and cash equivalents.
Return Probability
The boxes below represent the probability that STRS will hit a given assumed rate of return based on 10,000 simulations of various capital market assumptions, in addition to plan assumptions and historical data.