Barb Garwood to Damon Asbury: Why was vital information withheld from the Board before discussion and a vote?

From: Tom Curtis

To: Barb Garwood

Date: January 22, 2006

Subject: Re 2 Questions For Damon, ORTA News

Hello Barb,

It is great to hear you are back on your feet. Good news! ORTA's Blin Scatterday, Ann Hanning and Lou DiOrio attended a portion of the CORE meeting where we interviewed 4 of the 9 members that have obtained petitions for running for the 2006 election of two active board seats. They came in late, because the STRS board meeting ran over, but they were very appreciative of us inviting them. Blin personally asked me that CORE and ORTA begin to work together, so we might have a greater impact on what is taking place now and in the future. I am not sure how that will play out, but I am very encouraged with his offer and hope that will allow a means of communication between us.

Your letter to Damon is excellent and right to the point. He failed to have the document for the payment of non-investment employee bonuses prepared for the special board meeting called for on November 2nd. That is inexcusable! The board went ahead and voted, against the protest of both Dennis Leone and John Lazares to pay the bonuses. When the final document came into being, it included a payment into the employee's retirement account as well. That should never have happened, but our buddy Damon is only concerned about staff getting what they deserve and not what retirees deserve. Honestly Barb, this is a theme that is so prevalent at the STRS and one ORTA needs to have concern with and hopefully will strongly voice their concern about. This has to change or we will continue to lose.

STRS is all about using our money to first pay the employees as well as we will allow to be accepted. On Thursday, Aon presented a report to the board calling for raises for the entire non-investment staff that would have provided many employees with as much as a 20% increase in wage. That is ridiculous! We just get through paying out over $4 million dollars in bonuses and attorney fees and they turn right around and request a huge increase in non-investment wages. I get so infuriated about this kind of situation that it makes me look poorly in their eyes, but this is just plain wrong and yet they continue to ask for such without any shame. Simply unbelievable!

CORE endorsed two candidates on Thursday, Dr. Thomas Hall and Mark Fredrick. Would you care to have petitions for these two? If so, how many?

Take care,

Tom Curtis

CORE Advisory Committee Member

From: Barb Garwood
To: Damon Asbury
Sent: Sunday, January 22, 2006
Subject: two questions

Hello Damon,

Several months have passed since we have communicated, but I am now back to remind you about a commitment you made to me some months ago. Also, I have a grievous concern and would appreciate your responding to a question on a new topic.

First, let me raise the issue we have discussed in the past. STRS adopted a plan some time ago. It was the plan to raise the percentage of money a retiree would receive if he/she worked 35 years or longer. You told me you would report the results of a study about whether that strategy is saving STRS money. The report was presented to the STRS Board on 1/20. Will you forward the information to me as promised? I would appreciate your summary of the report as well as a full copy of the report sent to me by U.S. mail. My home address is: [xxx]

Second, The STRS Board members recently voted on an item assuming that the full facts were presented to them. However, the minutes indicated that information pertinent to the item were NOT included. That is either deceitful and unethical or sheer incompetence. Any agenda item must presented thoroughly, completely, and impartially. The Board members can then debate the item with full knowledge. My question, Damon, is why you did not clarify to the Board members that some information was missing before the vote? You are the Executive Director and are intimately involved with setting the agenda AND preparing the paperwork to explain an agenda item. If there is a contract to be considered, you are the responsible party for presenting the FULL contract to the Board members. Again, why did you not explain the agenda item fully at the Board meeting? Why did the Secretary have information to include in the minutes that the Board members did not hear?

I look forward to your response on these two items. I thank you, as always, for your consideration and quick reply.

Sincerely,
Barbara Garwood, Ph.D.