Tom Mooney responds to RH Jones re: 13th check

From: Tom Mooney

To:RH Jones

Subject: Re: Retired Teachers not keeping up with the COLA.

Date: Thu, 26 Jan 2006

Robert,

George Taylor is deceased. Herschel Grim is now OFT's Retirement Consultant.

OFT is very concerned about the suspension of the 13th check. We are as outraged as any other STRS member at the spending habits of STRS in the past. But, the real reason the 13th check was cut is that the stock market tanked. This also eliminated the surpluses that the STRS had been using to bolster the health care stabilization fund. So, retirees got hit twice: steep increases in health care premiums and loss of the 13th check. This was all very bad planning on the part of STRS of course, but it doesn't change the fact that the money isn't there, until we can persuade the legislature to increase contributions or the stock market soars again or both.

If more money does become available, all of us would have to choose whether to lobby for a rollback in health care premiums first or restoring the 13th check. I think most OFT retirees would give priority to reducing health care premiums, then restoring 13th check.

The 13th check is not required by law. It is up to the STRS Board and depends on surplus earnings.

I'm not clear about 20% raise (who got them and when?) We are not in favor of any fat raises for anybody at STRS now. They would have to show clear and convincing evidence that some category of employees is seriously underpaid compared to comparable jobs elsewhere and that we are losing staff we need because of it.

The bonuses for non-investment staff were outrageous, but they are history, although at great cost in litigation and settlement payments.

We're on the same page as far as past practices by STRS. But, the current board can't print money. We have to work to increase contributions by active teachers and keep pressuring STRS management to contain health care costs, and hope for economic recovery to boost earnings. Health care is still not funded for very long. And, STRS must reduce its funding period before it can improve any benefits.

Anyway, that's how I see the big picture.

From: RH Jones

To: Tom Mooney

Sent: Monday, January 23, 2006

Subject: Retired Teachers not keeping up with the COLA.

Tom Mooney, OFT Dir. and George Taylor, OFT Health & Retirement Consultant,

According to a recent Kathie Bracy Blog, a June Hughes reports that the OFT: "---achieved legislation for the payment of a yearly 13th ck.---." Tom and George, are you both asleep on this? Where has OFT been while or 13th ck. was taken away? With 2-OFT sponsored STRS BD members now serving, and in light of the huge STRS non-investment employee raises and bonuses (While some are reported by Tom Curtis as being as high as 20%.), where has OFT been?

The media reports some school boards awarding as high as 9% salary adjustments raises to active teachers. Some will retire at twice the amount that many of those presently retired receive. However, will these same actives find themselves in a similar situation in the future as they retiree. Therefore, at this time, a legislated CompoundCOLA is in order. And, in the meantime, an immediate restoration of our already legislated 13th ck. If the ORC 3307.15 is "solely for the benefit of the members," than why is this outrageous 20% STRS employee increase even considered by the STRS BD. For the sake of active & retired teachers, I beg you both to have your Legal Dept. look into this, perhaps illegal activity?

Robert Hudson Jones, retired teacher