RH Jones: Urgently Needed 13th Check as Consumer Prices Rise

February 25, 2006

To all:

The Associated Press reporter, Jeanne Aversa wrote this week that: "U.S. consumer prices go full speed ahead. Energy costs rise, push inflation index higher". In short, the government's most closely watched inflation barometer released last Wednesday, the Consumer Price Index, advanced by O.7 percent.

I would like to remind everyone that this is the State Teachers Retirement System, not the Shaft Those Retiree's System. Granted we retirees received a 3% Simple COLA (non-compounding) with Bill 190, but that does not keep us up with inflation as would the additional and timely 13th check, as well.

The old STRS BD and some employees came up with the "smoothing" idea. "Smoothing" the up and down years of investment income to justify, in the recent up years, the shorting retired members of an ORC allowable supplementary check! A recent STRS report stated that there are 95 retirees over 100-yrs old; 3,010 are over 90-yrs. I ask: is this being fair to them? Or, for that matter, any retiree? It is therefore obvious, with the loss of the 13th check, that the STRS retirees are paying for improvements to entice actives to retire.

Note: Dr. Dennis Leone's original report, recently placed on Kathie Bracy's Blog, put the 13th check in a negative light. Leone, later on, rescinded that aspect of the report.

Every new BD member has to be educated on the importance of retiree financial security; not only is it important that there is an available HC/Rx but inflationary protection is also important. The new BD voting 5-2 that new members Chapman & Flannagan be sent to Florida at a cost to the STRS of $7,000 demonstrates that the old BD thinking of entitlement still exists. This $7,000 growing in investment compounding would better serve its members than this obvious paid vacation. What happened to in-house and electronic workshops for BD members? Not only does this NOT go down well with retired members, this does not go down well with any concerned Ohio citizen! It is very poor Public Relations at this critical time. In good faith, Chapman & Flannagan should refuse this expensive "training" offer. It seems to me that when we have a terrific in house investment staff that can achieve over 12% interest this last quarter, we have plenty of talent at 275 E, Broad ST., Columbus OH, to instruct new STRS BD members.

RHJones of CORE and the SummitCRTA Legislative CMTE