FLASHBACK-1 YEAR AGO-Dennis, Molly, and Paul discuss STRS globetrotting

"If the Board trusts Steve Mitchell's investing expertise, then the Board can trust him giving them some in-service, or bringing others in." -- Dennis Leone

From: Molly Janczyk

Sent: Sunday, January 16, 2005

Subject: 1/20: Discussion and Future goals of STRS trips and or inserv./conf/spending.

Items brought to my attention:

1. STRS membership may believe it better to receive outside STRS inservices due to member trust and perception about all STRS. Perhaps some would think Mitchell was self serving STRS if he gives inservices even though others think Mitchell is doing what other pension systems do and is recognized for his work

**That is why I suggest having Mitchell and others give a panel discussion in front of us to rebuild trust.

2. Sometimes the best conferences are out of town.

OK. Occasionally-perhaps one per yr per board member if the entire board sees:
*******purpose to bring back info, videos, literature to educate the entire board and implement strategies.

******THAT did not seem the case for this trip for Endry and Scott who had only to say: It was good. Chair and VC should always attend. Others have problems, too.

HOW DID IT HELP EDUCATE THE ENTIRE BOARD? WHAT IS BEING DONE AS A RESULT OF THAT TRIP? WHAT INSERVICE or INFO DID THEY BRING BACK TO MAKE STRS BETTER FOR MEMBERSHIP? WHAT questions did they learn to ask? WHAT did they learn to watch for or to offer for a better board?

Unless those objectives can be accomplished........................The trip is not valuable. For one indiv. or 2 to gain some supposed insight which MAY result in some good thinking down the road is not sufficient reason-esp. when down the road, BOTH THESE MEMBERS WILL BE HISTORY!

I think the board caved to seem magnanimous to 2 indiv. who have been on the board a long time. Not good enough, unless there is more to this story surely not evident at this time.

The responses of them and Damon as to why they go and they are not required to provide any info other than good or bad...............NEEDS CHANGED! IT IS OUR MONEY and IT MUST BE SHOWN AT EVERY PT THAT IT IS SPENT WISELY!

For those newer board members who wonder why we remain angry and so adamant............... We have suffered greatly and feel robbed of our retirement due to things you had no part of.......... BUT that does not change that we feel now we must be aware of every dime possible and the beneficial purpose to membership it provides. ORC:3307.15.

The past cannot be changed: However, we remember crying educators who told of older retirees selling homes to move in with children having lost their ability to pay after a lifetime of work -teaching children. We remember hearing many over the last 2 years who could not pay for RX's to ease pain or help a condition with RX's costing up to $150 each. We remember those who refuse treatment and sign themselves out of hospitals for inability to pay such high costs for coinsurance. There are many stories and many hardships resulting from these past 2 years and most of us will never recover are financial security. Many had to return to work to pay for healthcare after full careers IF they ere still able, healthwise.

So, forgive our anger and lack of trust. You see, we trusted completely, and we were robbed. Now we will never ret again in order to reestablish that trust and protect future retirees as well as try to recoup a little of our promised benefit clearly stated in STRS Healthcare literature we still possess.

I doubt any of you are so naive as to think you walked onto a troubled board and would find it immediately restored or trust promptly given no questions asked. As you well know from living life.......trust is earned.

We will question every penny and track benefits resulting forever more. It wasn't our fault we were forever, untenably and catastrophically changed. One does not recover from that. So, we will have to build trust together-one decision at a time. I am afraid there is simply so other way. And none of you seem so thin skinned as to feel you are responsible for the past............only the future beginning with this decision. Folks want it explained. So explain it and then we can move on.......till the next decision.

This is why it would benefit all to openly discuss plans for spending our money in advance with us.

From: Dennis Leone

To: Paul Boyer

Subject: Re: CORE:COMM MEETING WITH DAMON!

Date: Sun, 16 Jan 2005

Paul -- I agree with you. Also, I wish to point out -- partly because I likely will not be able to leave the CEA-R meeting quickly enough on the 20th to speak to the STRS Board -- that I believe the spirit of the Board member reports from conferences should NOT be merely to say whether they liked it or whether they merely feel the conference would be good for others to attend in the future.

In nearly all school districts, when teachers or administrators attend conferences, they are expected to, upon their return: (1) Demonstrate what they learned in a written report; and (2) Specifically share what they learned with the peers.

I do not feel that Scott and Endry should have gone, given that they have 8 months left on their terms. It would have been better for STRS in the long run if two non-lame duck board members attended.

In terms of what was "learned" by Scott and Endry regarding investments, there was nothing discussed at the conference in the area that Steve Mitchell didn't already know. While I realize that Ohio law requires fiduciary training for Board members, who says it can't occur somewhere in Ohio. If the Board trusts Steve Mitchell's investing expertise, they the Board can trust him giving them some in-service, or bringing others in.

Dennis Leone

From: Paul Boyer

To: Molly Janczyk

Subject: Re: CORE:COMM MEETING WITH DAMON!

Date: Sun, 16 Jan 2005

I mentioned this in my committee report and want to emphasize it again. My speech for Thursday is all done and there is no room to add more. I hope that at least a few of you out there will hit hard in your speeches about conferences and who goes to them. I think Joe and Deborah knew in August that they would be chair and vice-chair for this, their last year on the board. They submitted their request to go and the board sent them. Their reports tell the board and us absolutely nothing except that they enjoyed the conference and both said they feel the two top officers of the board should go to this conference each year. Poppycock; if anyone needs to go, send a newer board member and one should be enough.

Let us let the board know loud and clearly this Thursday how we feel about this situation.

Paul