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OHIO COUNCIL OF HIGHER EDUCATION RETIREES Minutes of the May 17, 2016 meeting

STRS OHIO, Sublet Meeting Room PRESENT: University of Akron: Gandee, Bowling Green State University: Anderson, King; University of Cincinnati: Howe, Huether; Cleveland State University: Cagan, Kweder, Olson,Ramos; Kent State University: Janelle Feezel, Jerry Feezel; North East Ohio Medical University, Hodnichak; Ohio State University: Hill, Hobbs, Newsom; Ohio University: Boyd, Vedder, R. Vedder, K.; University of Toledo: Lapp ; Wright State University, Wolfe. ABSENT: Youngstown State University

Meeting was called to Order at 9:30 AM.

Minutes of the March 22, 2016 meeting were approved.

Treasurer’s Report. The report from the Treasurer was approved. As of May 17, 2016 ending Balance

was $5,317.82.

OPERS Report. Michele Hobbs reported the following:

April 2016 OPERS Report As of the end of March 2016 total assets were 86.2 Billion Dollars. There were two Membership Appeals. There was the following: TO: OPERS Retirement Board Members FROM: Craig Hallermann, Actuary RE: V. Discussion Items: A. Pension Actuarial Valuation Preliminary Results for December 31, 2015 The purpose of this discussion is to present the December 31, 2015 Pension Actuarial Valuation results to the Board. Background Section 145.22 of the Ohio Revised Code requires that the Board annually have the actuary prepare an actuarial valuation of the pension assets, liabilities, and funding requirements of the System. The Board is required to submit the complete actuarial report on an annual basis to the Ohio Retirement Study Council and the standing committees of the House of Representatives and the Senate with the primary responsibility for retirement legislation by September 1st of each year. Representatives from Gabriel, Roeder, Smith and Company (GRS) will present to the Board the preliminary results of the pension actuarial valuation for the year ending December 31, 2015. This presentation is designed to provide the Board with a current update prior to the finalization of the December 31, 2015 actuarial valuation.

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Next Steps Following the April Board presentation, the December 31, 2015 Pension Actuarial Valuation results will be finalized. As required, the complete actuarial report will be submitted to the Ohio Retirement Study Council and the standing committees of the House of Representatives and the Senate with the primary responsibility for retirement legislation by September 1, 2016. PERI Report: Geoff Hetrick, President, CEO, PERI, Inc. PERI is looking at the health care costs and retooling their communications and also refreshing their Website. ORTA Report: Dr. John Cavanaugh, is the new Executive Director of ORTA. ORTA is funded by dues and small investments. They held four conferences in April. They also will be looking at ways for better communications. Legislature, STRS Report. Dick Hill reported the following: STRS/HPA/Mitigation Rate and Legislative Update – Dick Hill reported the following.

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Healthcare and Pension Advocates (HPA) – 2 hour meeting on the second Monday of each month.

An independent “interested party” of STRS-Ohio stake-holders (employers, active members, retirees,

and staff guests) that reviews, in open forum, current healthcare and pension policies of the system.

Modifications are discussed, and recommendations are forwarded to the STRS Board for consideration.

Examples of issues of current concern:

1. Ohio House Joint Resolution (HJR 6), which would impose state control over retirement system

investment freedoms (designed to serve state political agendas)

2. A movement for the Federal government to monitor/regulate(?) investment freedoms of state

retirement system funds by the Public Employee Pension Transparency Act (PEPTA)

Strategies (HB 520) for resetting (reducing) the STRS migrating rate (adversely affecting the system’s Funded Ratio and Funding Period. STRS Health Care Update by Greg Nickell.

Board Approves Health Care Program Changes for 2017; Long-Term Health

Care Funding Discussions to Continue

At its April meeting, the State Teachers Retirement Board approved changes for the 2017 health

care program that are designed to help reduce STRS Ohio’s long-term plan costs and extend the

solvency of the health care fund. Due to increasing claims costs and the lack of a dedicated

source of funding, STRS Ohio is facing significant health care funding challenges. The approved

changes do not provide a long-term funding solution for the health care fund. The changes are

projected to extend the solvency of the health care fund by two to three years beyond the

projected 15-year solvency period reported last month in Segal Consulting’s annual actuarial

valuation.

The board is exploring long-term funding solutions for the health care program that would allow

STRS Ohio to continue a health care program that is of value to members. Throughout the

discussion of possible options, STRS Ohio will use its website, newsletters and eUPDATE email

news service to keep members informed.

Following reviews that took place during its February and March meetings, the Retirement

Board approved the changes outlined below to the STRS Ohio Health Care Program for 2017:

Plan design changes for 2017:

• The Alere disease management program for non-Medicare enrollees will be discontinued.

• Emergency room copays will increase to $75 from $65 for Medicare plan enrollees.

• Medical Mutual non-Medicare enrollees residing outside of Ohio will move to a Basic

Plan administered by Aetna.

• Urgent care copays will increase to $40 from $35 for all plans.

• Health care plans offered by HealthSpan will be discontinued.

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• Coverage for proton pump inhibitors (PPIs) will be discontinued for non-Medicare

enrollees.

• Preferred network for retail pharmacies will be adopted and copays at non-preferred

network pharmacies will increase by $10.

• Diabetic prescriptions copay will increase to the full copay from a one-half copay.

• Specialty drugs coinsurance percentage will increase to 13% from 10%, and the per

prescription maximum will increase to $550 from $500.

Eligibility changes for 2017:

• Medicare Part B premium reimbursements for survivors and beneficiaries who were age

65 by 2008 will be discontinued.

• Coverage for sponsored dependents of unmarried retired teachers will no longer be

offered. This does not include incapacitated adult children.

• Premiums for dependent children will be changed to a per child premium.

Subsidy changes for 2017:

• The subsidy multiplier for non-Medicare benefit recipients will be reduced to 1.8% per

year of service from 2.1%.

• The Medicare Part B premium reimbursement will be phased out over a three-year

period, beginning in 2017.

Legislative Report – Marla Bump

On Monday, March 21, 2016, Congressman Devin Nunes reintroduced his “Public Employee

Pension Transparency Act” (PEPTA), directly linking the need for PEPTA with the financial

crisis in Puerto Rico. Of course, Senator Orrin Hatch (R-UT) agrees, and insisted in a floor

speech in the Senate last week that it would be “beyond irresponsible” for the Federal

government to offer aid to Puerto Rico without also taking action to regulate public pensions. In

the meantime, opponents of public pension plans have been active in the press urging adoption of

PEPTA, with Andrew Biggs opining in Forbes that PEPTA is essential and would only be a

minor inconvenience—a “simple calculation that any plan actuary could perform at practically

zero cost.”

The Mitigating Rate is currently 4.50%. In February 2014, STRS Ohio’s actuarial consultant

recommended that the Retirement Board consider increasing the rate to at least 5.5%.

Campus and Association Reports

BGSU Campus and Association Report

The BGSU Faculty Association and the Administration signed a three year Collective Bargaining

Agreement in April. It was approved by the BGSU Board of Trustees May 6th. It provides a 3%

raise for faculty each year for the next three years.

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College Choice has ranked the Online Criminal Justice Master’s Program sixth in the nation.

As a result of a substantial gift from BGSU graduates, Michael and Sara Kuhlin, the BGSU

Board of Trustees named the newly renovated South Hall the Michael and Sara Kuhlin Center.

When the building opens in August it will house the School of Media and Communications.

Medical Mutual of Ohio has provided a one million dollar grant to BGSU to develop the Optimal

Aging Institute on campus.

The Greek housing units under construction on campus will be ready for occupancy in August,

2016. All sorority and fraternity houses will be on that site.

The BGSU Retirees Association held a joint program luncheon with the University of Toledo on

April 11 featuring Tom Henry, the Toledo Blade environmental expert. He spoke about “Water

Issues in Lake Erie,” and the Flint Water Crisis.

On May 9th the BGSU Retirees heard Dr. Jerry Wicks, Professor Emeritus of Sociology speak at

a luncheon on Passenger Train Travel in Ohio, Past Plans, Current and Future.

Two socials were held at retiree members’ homes, one on March 17th and another on May 5th.

University of Cincinnati

Looking at the feasibility for a Retirees Community and support an Emeritus Center.

Cleveland State

They held their Annual Dinner. They visited the Museum of Contemporary Art.

Kent State University Report to KSURA & OCHER May 2016 (Summary by Jerry Feezel)

At Faculty Senate, President Warren thanked the good work of the faculty and staff this past

year and for their good wishes on her health. Reviewing the year’s progress, she highlighted

KSU jumping 19 spots in the National Universities ranking this year. She said that 65% of that is

based on the quality of the faculty. We have hired 96 new faculty this year, 10 of whom are

diversity hires. The goal for five years is to attain 65% of the faculty in Tenure Track positions.

Adjustments will be done in the RCM model with input from the oversight committee. The

Foundations of Excellence program is nearing completion and establishing the Brain Health

Center will be a priority. State has allocated $20.5 million to KSU in capital funds for deferred

maintenance. Other goals include hiring faculty for global competitiveness, re-establishing as a

Carnegie Community Engaged University, launching a comprehensive development campaign,

and doing a facilities masterplan.

Provost Todd Diacon presented some results of the proposal in the strategic roadmap to

strengthen diversity and cultural competence of students, faculty and staff. He indicated that 17%

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of the state’s population specified other than white on the census, and 16.1% of that diversity in

the state is African American and Hispanic American. The 3-year Kent Campus enrollment

average for underrepresented minorities is 15.5%, and indications are that the incoming class

will be the most diverse ever. Senior Associate Provost Melody Tankersley presented

developments on a number of issues—the Blackboard grade push, midterm grades, the GA

health care subsidy, and the Academic Presence Verification Roster. The Blackboard grade push

will enable faculty to have grades entered in Blackboard be transferred to Banner. Beginning Fall

2016, all students in 00-thousand, 10-thousand and 20-thousand level courses will receive mid-

term grades. The grades can be posted anytime between week four and week seven. Tankersley

also clarified the position on the GA health care subsidy. Any research assistant, teaching

assistant, or teaching fellow, all of whom she would call GA’s, are defined by the Department of

Labor as non-employees. This is beneficial in that they do not have to clock in and out, we do

not need to have job descriptions, and there are other things that are simpler. However, the IRS

came out with a ruling three weeks ago that if they’re not employees you can’t offer them

employee benefits, one of which is subsidized health care. This applies nationally, not just to

Kent State. Kent has until next year to finalize compliance, so this year’s offer letters can offer

the subsidy but this is the last year. One of the legal provisions of the IRS is that you can’t

increase any student’s stipend for them to then pay for their own health care, but you can roll it

out at large to all of your GAs. We’re going to try to have some more ‘concierge’ types of

services out of the office of Graduate Studies, including places that they can get help finding

appropriate health care options.

In Athletics, The Golden Flashes Wrestling had 16th place finish at the NCAA Championships.

Men’s & Women’s Golf won MAC championships; Softball & Baseball placed 1st in the MAC.

Our first year as KSURA draws to a close with the annual picnic June 8th. HR supplied us with

email addresses of the past 10 years of Staff retirees and we are gradually getting them contacted

& involved with the Faculty retirees. We are expanding our other communication efforts with

notices of meetings in local publications (newspaper & County events email listings). We remain

financially sound without formal dues thanks to donations at meetings and small surcharges on

our major events; we also have the mailing support of the Provost’s Office. Efforts continue to

expand involvements with Institutional Advancement and Development Campaigns.

OSURA report for OCHER, May 2016. G. Newsom

As required by our transition from HR to the OSU Alumni Association, we have drafted a Constitution

and revised our Bylaws. A membership meeting in August should ratify the new documents. The loss of

the subsidy we’d been receiving from HR will make next fiscal year a challenge but we expect to come

out fine in the long term. We’ve kept our dues the same for next year, but we abolished the

complimentary membership for new retirees. (We’re awaiting the results of the experiment at

Michigan State, where they abolished their dues, which were in the form of subscription to their

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newsletter, replacing them with voluntary contributions. If that’s a money-making change, we could

follow suit.) The Alumni Association wants us to become a 501 (c) 4 or (c) 7 organization, requiring us to

pay sales tax, so we’re trying to understand why a 501 (c) 3 status is not an option.

Our annual summer picnic will be in June, with the star attraction being live animals from the zoo. Also

in June a visit to the Zane Grey and the John & Annie Glenn Museums and a trip to Lancaster and

Lithopolis are scheduled. Ballots have been sent out for next year’s officers, with the transition taking

place in July. Dick Hill and Tom Sweeney, both former presidents of OSURA and long-time members of

the Board, are leaving their positions of leadership; their absence will be sorely felt.

Summary report for OSU: OSU sponsored a day-long seminar for about 800 people on food security,

mostly devoted to hunger in the United States. The University continues with a “study” of privatizing

energy management on campus, although it’s widely believed to be a done deal.

NEOMED

They are setting up scholarships for faculty and staff.

Shawnee State University – submitted by Dale Taylor.

Shawnee State University, Ohio’s 13th state university, offers more than 80 degree programs both

at the undergraduate and graduate level. The university enrolls approximately 5,000 students at

its Portsmouth location. There have been several significant developments during the past year.

Dr. Rick Kurtz became the 6th president of the university replacing the retiring Dr. Rita Rice

Morris. Dr. Kurtz came to Shawnee State via Ferris State University in Michigan. Another

significant development at the university has been the revision of the general education program.

All academy units reviewed general education requirements related to their areas. A number of

changes in the general education program were made to reflect current trends in specific

disciplines. President Kurtz recently announced the SSU expansion into downtown Portsmouth

creating a downtown corridor to the campus. An innovation accelerator is also planned as part of

the expansion process. The Shawnee State University Retirees Association met in both

December, 2015 and February 2016. At that time new officers were elected. A revision of the

association’s website and email systems are currently being reviewed.

University of Toledo

Astronomers at the University of Toledo have identified a new brown dwarf (lightweight star) in

space approximately 100 light years away from Earth estimated to be roughly five to ten times

the mass of Jupiter and 10 million years old. The College of Business and Innovation was

ranked in the top 100 best undergraduate business schools in the nation by Bloomberg. The

college came in at No. 96. UT was recently selected as one of America’s Outstanding Navy

Reserve Employers for 2016. More than 100 employers were nominated for this recognition; 50

were chosen, and UT was the only higher education institution selected to receive this

designation. In the latest release of Academic Progress Report (APR) figures by the NCAA all

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16 varsity had at least a 970 score, well above the NCAA’s “cut point” of 930. The football

program had an APR score of 974, giving it the No. 1 mark in the Mid-American Conference for

the third consecutive season. Women’s basketball (996) also led the MAC. Men’s basketball

tied for second in the MAC with an APR score of 985. Upcoming events for UTRA include for

June our Annual Meeting and Luncheon with featured speaker UT President Dr. Sharon L. Gaber

and a Mud Hens baseball game with pregame buffet, in July a lecture on caregiving for family

members and a tour of our medical school’s Immersive Simulation Center, and in August a bus

trip to New York City (already sold out).

Wright State Report for May 17, 2016 OCHER meeting

President Hopkins announced that he will retire next year.

The first Presidential Debate at Wright State in September is taking a lot of attention and the

estimated costs have escalated to $8 million. Cyber security and back up electrical generators

are a large cost. The university is working to raise money from the region to help cover the

costs.

The WSU Retirees Association had its second annual retirees luncheon reunion with a good

attendance. President Hopkins was the main speaker.

Tom Hanks was on campus for the dedication of the Tom Hanks Center for Motion Pictures. He

charmed the audience with his talk and workshops for theatre classes. Tom Hanks was the

honorary chairman of the WSU multiyear fund raising drive “Rise Shine” which exceeded its

$150 million goal. WSU also got some extra publicity when Tom Hanks talked about the new

center and showed a photo on the Stephen Colbert Late Show. At the same time David

McCullough visited and conduction writers workshops. The two looked at the Wright Brothers

collection in the university archives in preparation for Tom Hanks planning production on HBO

based on McCullough’s book, “The Wright Brothers”.

The firing of the men’s basketball coach, Billy Donlan, got a lot of negative response. He was

personally popular. A new coach, Scott Nagy from South Dakota State University, was hired.

The Women’s basketball coach was hired away and his assistant was named to replace him.

The operating budget for the new year is being cut by $19 million. Unspecified personnel cuts

are being predicted.

Paul Wolfe

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Committee Reports

OCHER Advocacy Issues:

The committee believes the following issues should not be the responsibility of the Advocacy

Committee and should be removed from its jurisdiction.

1. Insure representation of all Ohio State supported institutions on the OCHER.

2. Attract members interested in OCHER leadership roles.

3. Maintain OCHER communication tools: e.g. website, email, annual reports,

archives, etc.

Motion to remove these items was given. Motion passed..

OCHER Constitution:

Motion was made to accept the May 17. 2016 changes in our Constitution. Motion passed.

Unfinished and New Business

Motion was made and approved to send $500 to the HPA.

Meeting was adjourned at 3:00.

Future meeting dates are:

November 15, 2016

March 14, 2017

May 16, 2017

Submitted by Michele Hobbs