Lawsuit over bonuses not new; May 2004 Kostyu column tells the story
"I did my job and they did their job" -- Damon Asbury (He also announces that by July 1, 2004, the system's day-care center will be revenue-neutral and should show a $5100 surplus in 2005.)
Deborah Scott gives tearful speech over Board decision to reject bonuses
STRS’s board rejects bonus for some staff
AP / Mike Elicson
(Photo of Damons Asbury) IN THE HOT SEAT. Damon Asbury, director of the State Teachers Retirement System, says STRS risks a lawsuit if it does not pay 268 employees bonuses for the 2002-2003 fiscal year.
By PAUL E. KOSTYU
Copley Columbus Bureau chief
COLUMBUS — In a close vote Thursday, the board of the State Teachers Retirement System rejected paying bonuses to 268 noninvestment employees for the 2002-03 fiscal year.
It will now wait to see if any of those employees sue the system.
The board voted 5-4 to ignore the recommendation of Executive Director Damon Asbury and its attorney, Assistant Attorney General John E. Patterson. Both said the pension fund risked a lawsuit that it would likely lose.
The board approved paying bonuses worth $2.05 million to 102 investment employees by a 7-2 vote. It also unanimously terminated the bonus plan for noninvestment employees.
Patterson would not comment about the decision.
“I did my job and they did their job,” Asbury said.
Prior to the vote, the board huddled for hours in closed session to talk about its legal standing. It interrupted that session long enough to listen to 20 retirees berate the board and Asbury for even considering the bonuses.
“I’m very pleased,” said Marilyn Gibbs, a retired Plain Local School District teacher, after the vote. “I think it’s fair. It’s the result I had hoped for.”
Gibbs earlier told the board she was wearing a black outfit “to note the passing of trust at STRS.” She said retirement system employees “should be happy to have a job,” because, in Stark County, thousands are without work following layoffs at local industries, including Timken and Hoover.
The bonuses had been on hold since last fall after media reports brought to light questionable spending at the retirement system on travel, artwork, expenses and salaries.
Mike Billirakis and Jack Chapman, who have both drawn the ire of retirees in the past, voted to reject the bonuses for noninvestment employees. Billirakis called the process “ugly” and Chapman said the decision was “agonizing.” They wouldn’t comment further.
Joining them were the representatives of Attorney General Jim Petro, Auditor Betty Montgomery and Superintendent of Schools Susan Tave Zelman.
In a letter to the board, Montgomery said awarding the bonuses would “severely undermine” the progress “we have made in changing the culture at our system.”
She expressed concern, too, that the board’s “litigation position” has been compromised because of the public release of Patterson’s legal analysis of the issue. Still, she said the liability from a potential lawsuit was not sufficient for her to support paying the bonuses.
Deborah Scott, who was chairwoman of the board when the bonus system was in place, gave a tearful speech saying she disagreed with the decision.
“People have really worked hard,” she said. “People did what we asked them to do.”
Current Chairman Eugene Norris, who lost a re-election bid and will leave the board in September, said he didn’t “like the appearance that we have attempted to divide the staff. I’m really concerned with what we are doing.”
The board learned that another major issue that has been haunting it for a year may be ready to go away. Asbury announced that in fiscal year 2004-05, which begins July 1, the system’s day-care center will be revenue neutral.
The board was criticized for subsidizing the center with hundreds of thousands of dollars annually. Asbury said by raising tuition, reducing costs and requiring the use of vacation and labor credits, the center should show a $5,100 surplus next year.
Deborah Scott gives tearful speech over Board decision to reject bonuses
STRS’s board rejects bonus for some staff
AP / Mike Elicson
(Photo of Damons Asbury) IN THE HOT SEAT. Damon Asbury, director of the State Teachers Retirement System, says STRS risks a lawsuit if it does not pay 268 employees bonuses for the 2002-2003 fiscal year.
By PAUL E. KOSTYU
Copley Columbus Bureau chief
COLUMBUS — In a close vote Thursday, the board of the State Teachers Retirement System rejected paying bonuses to 268 noninvestment employees for the 2002-03 fiscal year.
It will now wait to see if any of those employees sue the system.
The board voted 5-4 to ignore the recommendation of Executive Director Damon Asbury and its attorney, Assistant Attorney General John E. Patterson. Both said the pension fund risked a lawsuit that it would likely lose.
The board approved paying bonuses worth $2.05 million to 102 investment employees by a 7-2 vote. It also unanimously terminated the bonus plan for noninvestment employees.
Patterson would not comment about the decision.
“I did my job and they did their job,” Asbury said.
Prior to the vote, the board huddled for hours in closed session to talk about its legal standing. It interrupted that session long enough to listen to 20 retirees berate the board and Asbury for even considering the bonuses.
“I’m very pleased,” said Marilyn Gibbs, a retired Plain Local School District teacher, after the vote. “I think it’s fair. It’s the result I had hoped for.”
Gibbs earlier told the board she was wearing a black outfit “to note the passing of trust at STRS.” She said retirement system employees “should be happy to have a job,” because, in Stark County, thousands are without work following layoffs at local industries, including Timken and Hoover.
The bonuses had been on hold since last fall after media reports brought to light questionable spending at the retirement system on travel, artwork, expenses and salaries.
Mike Billirakis and Jack Chapman, who have both drawn the ire of retirees in the past, voted to reject the bonuses for noninvestment employees. Billirakis called the process “ugly” and Chapman said the decision was “agonizing.” They wouldn’t comment further.
Joining them were the representatives of Attorney General Jim Petro, Auditor Betty Montgomery and Superintendent of Schools Susan Tave Zelman.
In a letter to the board, Montgomery said awarding the bonuses would “severely undermine” the progress “we have made in changing the culture at our system.”
She expressed concern, too, that the board’s “litigation position” has been compromised because of the public release of Patterson’s legal analysis of the issue. Still, she said the liability from a potential lawsuit was not sufficient for her to support paying the bonuses.
Deborah Scott, who was chairwoman of the board when the bonus system was in place, gave a tearful speech saying she disagreed with the decision.
“People have really worked hard,” she said. “People did what we asked them to do.”
Current Chairman Eugene Norris, who lost a re-election bid and will leave the board in September, said he didn’t “like the appearance that we have attempted to divide the staff. I’m really concerned with what we are doing.”
The board learned that another major issue that has been haunting it for a year may be ready to go away. Asbury announced that in fiscal year 2004-05, which begins July 1, the system’s day-care center will be revenue neutral.
The board was criticized for subsidizing the center with hundreds of thousands of dollars annually. Asbury said by raising tuition, reducing costs and requiring the use of vacation and labor credits, the center should show a $5,100 surplus next year.
posted by Kathie Bracy at 1:12 AM
<< Home