BASA Member Update 4.28.17

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 report provides 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 .