The State Teachers Retirement System of Ohio is expected to make a decision in the next few months on a cost-of-living adjustment for those getting pensions.

The STRS board is looking at four options. Each would give a 2 percent COLA, although there are differences in each plan. The board has been reviewing options since June 2021.

The most likely option at this time is a one-time 2 percent COLA and eliminating a minimum 60 years of age requirement for full retirement benefits, Nick Treneff, STRS spokesman, said.

But no decision will be made until after the results of two studies are finished, which is expected in March, he said.

Currently, teachers with 30 years of experience can retire at any age and collect full benefits. That is going up to 35 years of experience in August 2023. The plan is, effective August 2026, for teachers to need to be at least 60 years of age with 35 years of experience to be eligible for full benefits.

A one-time COLA at 2 percent would cost about $1 billion, Treneff said.

“An evaluation is ongoing as to whether it’s too much stress on the system,” he said.

One of the other options is a permanent annual 2 percent COLA, which would add $13.8 billion in costs. If that option is implemented, STRS’s unfunded liabilities would total $34.6 billion, Treneff said.

The pension fund has more than $90 billion in assets as of June 30, 2021.

A change to all state pension funds in 2012 reduced benefits and allowed boards to change the COLA without the approval of the state Legislature.

STRS reduced its COLA for retired teachers from 3 to 2 percent in 2012. The 2 percent annual COLA was removed for all STRS retirees in 2017 in an effort to keep the pension’s finances strong.

About 500,000 active and retired teachers are in the system.

This is occurring while Senate Democrats — led by state Sen. Teresa Fedor, D-Toledo — introduced a bill Jan. 12 to reinstate annual COLA to retirees in STRS.

“With inflation at an all-time high, retirees living on a fixed income need this adjustment more than ever,” Fedor said. “Though this increase does not make up for all the money lost over the years, it is still the right thing to do.”

While no Republicans have signed on as co-sponsors, some — including state Sen. Sandra O’Brien, R-Lenox — said they favor it.

If the bill passes, it would require STRS to give the increases.

But the STRS board has been looking at a COLA increase since last June, months before Fedor’s bill was introduced.

“The board and staff have been proactive on this following a year of exceptional investment returns,” Treneff said.