John Curry, Ryan Holderman: Message to Active Teachers who want accurate information

From: John Curry
Sent: Friday, January 20, 2006
Subject: Setting the record straight! Active teachers, please take a minute of your time to read.

From CORE member Ryan Holderman comes this brilliant "educating the educator" moment (following my letter to active teachers.) After reading the OEA's version of what has and is happening with the STRS (that they dominated up until 2005), I find that they are now attempting to "shift the blame" on the new STRS Board for something that is not, in fact, happening. Had the "old" OEA dominated STRS Boards during the 1990's had the courage to increase contribution rates by both employer and teacher, the current healthcare crisis at STRS wouldn't exist. OPERS (Ohio Public Employees Retirement System) took heed in the 1990's and saw to it that, with careful planning and increased contribution rates, their retirees would be in much better shape re. healthcare when they retired. OPERS has even "grandfathered" soon-to-be retirees for a period of three years before significant hc rate increases affect future retirees.

The former OEA dominated STRS Board DID NOT allow any grandfathering when that Board increased significantly the hc costs for the retiree and totally eliminated the retirees' spousal subsidy for health care. Maybe the OEA would like to inform their active teachers that a current 30 year OPERS retiree's health care premium is ZERO dollars per month and his/her spouse is an additional $80 per month (Medical Mutual 80/20) WHILE a 30 year STRS retirees' and spousal premiums are (Medical Mutual 80/20) $144 and $486 respectively for a total of $630 a month out of that retirement check - Aetna rates are even higher! These statistics are available by clicking on the following link: http://www.orta.org/health_care_premiums.htm Active teachers, the OEA saw this coming years ago, but didn't have the political courage to stir the calm waters for an incremental increase in contribution rates. You now will reap the benefits of this lack of responsibility by the former OEA dominated STRS board. Actives, you now pay one dime out of every dollar you earn to STRS- NONE of that dime goes toward your future healthcare or the current retirees' healthcare. Your employer pays an additional 14 cents out of every dollar that you earn. Only ONE PERCENT of that 14 cents goes toward STRS healthcare- the rest goes for investments for your pension and STRS administrative costs. So, out of every 24 cents STRS takes in, only .14 of one cent goes toward retirees' healthcare. Of all five Ohio public retirement systems, this is by far the lowest healthcare contribution rate - you can thank the former OEA dominated STRS board for this meager contribution rate.

While you are at it, actives, check into the lawsuit that the OEA has filed against their own OEA employees' unions for attempting to assist the current OEA retirees with THEIR OWN class action lawsuit against the OEA over a health care issue. I'm sure the OEA hasn't informed you of this, have they. A click on this link will take you to the page where you can see it yourself in Adobe Acrobat Reader format : http://www.coreofoea.com/member_area/Lawsuit%20OEA%20v%20OASU%203-29-05.pdf The initial (class action) suit that was filed against the OEA by their very own retired members can likewise be taken from the internet by clicking on the following link which will produce an Adobe copy of this document: http://www.coreofoea.com/OEA_member_area/Complaint--FINAL11-11-04.pdf Both suits are currently in litigation.

I realize that too many teachers (as I was for 30 years) don't have the time to delve into the sordid STRS history to discover that the above is a factual account of what really has transpired at STRS over the last decade or so. They haven't been told of the misspending, mismanagement, and entitlement philosophy that the former OEA dominated STRS Board allowed to flourish right under their noses. Losing 12 Billion dollars during a period of two years while, at the same time, awarding almost 20 million dollars in STRS staff bonuses of active teachers' and retirees' money doesn't quite fit into my description of responsible leadership at a time (in their own words) "when OEA held the seats." Active teachers, PLEASE take a little time to check into the facts yourselves.

John Curry - a Proud CORE (Concerned Ohio Retired Educators) member

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From: Ryan Holderman

Sent: Friday, January 20, 2006 3:16 PM

Subject: Setting the record straight!

Dear One & All:

I received the message below from a gentlemen seeking clarification of the health care situation at STRS:

"Ryan, I am from Scioto County and I am an Art teacher who has been getting email from Molly about various STRS stuff. What's this about doing away with health care benefits? I have been screwed by the OEA before and I don't trust them. Their job is to keep stuff stirred. They wouldn't have jobs if they didn't. Can you get me more info? I try to keep our staff informed about CORE and STRS info. Thanks Brad Painter."

You will find my response below.

Later, Ryan
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Dear Mr. Painter:

A recent OEA Executive Committee Report contained the following paragraph:

"OEA-R members need to talk to their former locals to tell them how important it is that OEA wins this election. The current Board, without an OEA majority, are talking about eliminating health care benefits for retired members. This never happened when OEA held the seats."

I found it ludicrous that OEA should imply that retirees' health care benefits are jeopardized because OEA no longer holds a monopolizing majority on the STRS Board. It was during the period when OEA had a five member control of the Board that Executive Director Herb Dyer, recently convicted of misdemeanors related to his tenure at STRS, let it be known that he felt STRS should get out of the "health care business!"

It was also during the 1990s, again while OEA controlled the Board, that our retirement funds were spent to build the lavish STRS headquarters, to fund fitness centers and daycare centers for employees, to support outlandish bonuses for both investment and non-investment staff and to pay for out-of-control travel spending by STRS Board members. Remember, the majority of those Board members were OEA backed people! If, during this period when the economy was booming and STRS was reaping good returns from investments, funds had instead been put into a dedicated stream of funding for health care the health care fund would not be in such dire condition. Because the OEA controlled Board failed to take that action we are now facing a health care crisis. Contrary to what was said in the quote from the OEA Executive Committee report, the present STRS Board is working diligently to find a solution to the problem. They realize that there is no quality retirement without affordable health care. For OEA to imply anything else in order to garner votes in the upcoming Board election is despicable!

If you go to the STRS website, www.strsoh.org you will find an excellent report on the looming health care crisis and the steps that are being taken to address the situation. Be sure to view the online presentation and take the survey.

If you would like additional information about the role that CORE (Concerned Ohio Retired Educators) has played in supporting Dennis Leone and John Lazares in their effort to reform the STRS Board, go to www.concernedohio.org .

CORE meets each month in the Sublett Room at STRS during the noon recess of the Thursday session of the STRS Board meeting. You are welcome to attend.

I hope that this has answered your questions and pointed you in the right direction in your search for information. If I can be of further assistance, please contact me.

Sincerely, Ryan Holderman