Robert Hudson Jones: An open request for legislative support for an increase in the employee/employer contribution to STRS OH

"In addition to the great salaries and benefits, the employees and elected members enjoy the many "perks" generously offered by themselves. As an additional note, the STRS Bd dominated by OEA Bd members unanimously voted to move the 8% employer contribution down to 1% to pay for an increased base that favored actives and unexpectedly changed the 30 yr unfunded liability. This move cost the retirees' HC/Rx a downward spiral."

November 10, 2005

My two siblings and I are retired career educators with over 30 yrs public service each. All three of us having taught in tough urban inner city schools. Of course, our health suffered. We have all been hospitalized many times. Health Care and Prescription Insurance (HC/Rx) were promised to us by our employer and the STRS but the promise was not legislatively guaranteed. Today, we, and all retired educators, are suffering because of it. Without a legislated increase for HC/RX, upon retirement, active educators will suffer in their future retirement too.

The Guarantee:

As you probably know, the pension is guaranteed in writing by the Ohio Revised Code (ORC) that is as secure as the State of Ohio and the US dollar. The current STRS legislative request for an increase in the contribution, if passed, will make for an HC/Rx guarantee, as well.

An Additional Need:

In the past, we retirees were also told that we had a yearly Cost of Living Adjustment (COLA). Gratefully, not too long ago it was raised to 3%. Most folks think that is great, not realizing that the 3% is a simple COLA, not a compounded COLA. A simple COLA is based on the educator's final average salary and will not change from year to year. Also, gratefully, the inflation fighting, and fair to all legislation of the "13th check," Ad Hoc increases, and base increases have somewhat kept retirees out of the poorhouse. However, note that those retiring since 1990 have experienced no Ad Hoc increases.

To stay up with inflation, and to keep from having to frequently go back to the legislature to try to do so, a Compounded COLA (CCOLA) would be a better solution. It permanently accumulates compounding on the base each year as bank savings accounts are compounded, as you know.

While a STRS OH pension is better than a much lower Social Security Pension, Social Security (SS) does compound every 6 months. However, due to the federal offset law passed under Ronald Reagan the thirteen or so states that have a STRS -- their members cannot draw their total earned SS benefits that they paid into -- Congressmen and Senators do not suffer the same offset.

Without a CCOLA, present and futures retirees, if they live long enough, are finding, and will find out, that their purchasing power will diminish in half about every 12 yrs. into retirement.

As most active educators enjoy dental and eye care, we retirees do not.

The Blame:

First, we retired and active educators have us to blame. We were, and are, not aggressive enough in demanding and securing salaries and benefits high enough to put us on the level of other college graduates with 5 yrs of education and beyond -- we educators paid the expensive tuition, not our employer. We are, did not, and are not, demanding that our professional organizations monitor our STRS and the OH Legislative misadventures.

While our STRS and our active and retiree unions were working in collusion (playing with our pension and dues monies) many employees in these groups are earning in the high six figure salaries, with full paid benefits, these STRS employees, meanwhile, paying into their retirement through the Ohio Public Employee Retirement System (OPERS). Because of our apathy, we did, and are letting them get away with it. In addition to the great salaries and benefits, the employees and elected members enjoy the many "perks" generously offered by themselves. As an additional note, the STRS Bd dominated by OEA Bd members unanimously voted to move the 8% employer contribution down to 1% to pay for an increased base that favored actives and unexpectedly changed the 30 yr unfunded liability. This move cost the retirees' HC/Rx a downward spiral.

Secondly, at STRS, in meetings closed to us and to the public, many important decisions are made without written minutes. For instance, in a closed board meeting in, 2004 a "business decision" led them to take away our legislated 13th check. Some informed retirees claim this money was used by the STRS BD to put in escrow to pay for the lawsuit award that the court levied against our STRS by non investment employees. As you can see, retirees paid dearly to award these nonessential, and easily replaced employees. This is a clear violation of the spirit of the ORC 3307.15 that states that STRS OH is to serve: "for the sole benefit of the members." We are the STRS, so therefore we are responsible; we vote and elect the members to the STRS BD.

Thirdly,

The Ohio School Boards Association (OSBA) and its leadership has tried to run the very numerous public school districts "on the cheap." This has hurt children as well as their educators. Consolidating districts would save much taxpayer money but for the OSBA this would mean fewer dues paying members. Also, they have done very little to stop the drain of public funds into the hands of profit minded businessmen of the private Charter Schools. And, like our educators' unions, Ohio's far too many Public School Districts BD members and their "leaders" have been more interested in the personal perks of travel, meals and parties rather than the serious business of providing a proper education as recommended by the constitution for Ohio's children. As a consequence, the OSBA and the teacher unions hired no lawyers to file charges in the unlawful use of STRS funds by some Bd and employees of our system. They failed the dues paying memberships.

Threats to STRS retirees coming from the OSBA is unacceptable. We are used to it. Like police and fire personnel, we educators have been exposed to disease, verbal and physical threats and have been wounded and killed in the line of duty; one killed and one wounded just last week. Therefore, here in Ohio, it is unconscionable to leave college trained educators of our children without adequately paid HC/Rx, Dental/Eye insurance and a CCOLA. Other public servants have it. Why not Ohio's teachers?

Fourth,

Mostly, the American culture is to blame. The voting public, and those citizens who are eligible but do not vote, place little value on public education; children, and their educators, therefore suffer low priority of the American GNP. Our culture spends too much of its GNP on control of lawlessness, AIDS, illegal drugs, pornography and even pets, to have much left to pay for the future: our children.

Further, recent cultural change to a majority of one parent families, and the consequent child that are more expensive to educate, leave our nation's future political and economic leadership doubt. Hedonism takes priority. An undisciplined and undereducated society will be dominated by others who are.

Having spent a year in Asia, and having been back 7 times since then, this retired teacher that studied schools there, can reveal that Asian culture puts more emphasis on education -- preschool all the way through college and post high school technical schools; consequently, an undereducated traditional American society, and people, are at risk of being "trumped" in the whole spectrum of civilized conduct. And as our American natural resources fade, our national defense will still to depend on our brain power developed in public schools.

Conclusion:

Now is the time to support an increase in the employee's and the employer's contribution. Presently, we have the new protective legislation of SB 133 already on the books; and, if we are forever vigilant, there will no longer be a chance for lawbreaking graft in the STRS system. Not to worry, the people's money is now well protected! After 74 yrs of life, my learned resolve, concerning a need for a solution to this matter of an increase in employer/employee rates, is that everyone needs to correct a wrong, do the right thing, and get the legislation passed.

Respectfully submitted, this carefully crafted original message was done at the expense of the writer:

Robert Hudson Jones,
Retired STRS Member, a Concerned Ohio Retired Educator (CORE) Legal CMTE Mem., Summit CRTA Legislative CMTE Mem., Life member of ORTA, AEA, NEOTA-R, OEA/OFT, OEA-R, NEA, and NEA-R.