It is not possible to suppress fund statements for retired funds. As long as the fund exists in the general ledger a fund statement will be produced.

As long as all gl and fund balances are brought to zero and the accounts are marked inactive, once EOY is run, the fund should be gone from the GL and there will be no more fund statements for the future years.

There are ways to work around this issue:

If you are selecting a fund rep type when you export the statement, either remove the fund rep type from all profiles for that fund or uncheck the allow mail box on that profile.  Depending upon your communications with the person, one of those options might be available.  Because either the profile shouldn't get mail ( or a fund statement) or there is no person assigned, the fund won't export.

Another option would be to add a fund statement style value to the statement style field found in the Fund2 > Fund statement radio area.  This will cause the fund statement exported data to go to a different file and thus not get merged with the rest of the statements. See How can I skip a fund statement when printing? for more explanation.

So although you can't check a box to skip retired funds, there are ways to keep the data from exporting or if exported, to not merge.