Robert Hudson Jones: Rebuttal to Gary Hollow's faulty math
From RH Jones, February 12, 2006
Re: NEOEA's Chair, Gary Hollow, Missed Math Problems
In Hollow's recent hollow comment, appearing in my NEOEA-R publication, Vol.6, No.6, Feb. 2006, he failed to do his math homework for some of the retired STRS members. The legislature, the past STRS board/employees, and the educator's unions failed math, not the retirees -- especially some retirees.
1. Some rank and file retirees, who have the audacity to exercise their constitutional rights to question the decisions and actions of our public servants, are seen by the power brokers, as dangerous threats. These rank and file retirees have a firm grasp of higher math. They found the oversights that our union leaders, and the legislators, were neglecting to monitor at the STRS. This neglect led to loss of retiree/active income. The sense of entitlement by the STRS staff and board had gone on so long as to cause a massive rupture of our funds. These funds should have been compounding and growing the investments. And there was the failure of some investment staff to exit Enron, and other shaky investments, in time. Retirees made those math problems public, out of retiree frustration, by having the earned benefits of the 13th check and having our HC/Rx cut. Especially while the staff was receiving high bonuses and the board members partied on money that should have gone to retirees and active teacher members alike. Where were our active/retiree union leaders? Where were the two lawmakers who sat on the STRS board all those years, one now running for Ohio governor?
2. Also the math was not done in a shortfall of revenue to the STRS due to huge amounts of public tax dollars earmarked for public school districts illegally going into the pockets of the entrepreneurs of the hurtful private charter schools. The OFT is suing to prove it; where are the other unions? Charter schools do erode the public school districts' base. As a result, fewer numbers of active teachers are employed in the public schools, plus the consequence of less revenue in STRS, equal less revenue to generate and compound STRS investment income. The STRS now is forced to go to the legislature for an employer/employee increase. Who did not do their math? Could it also be some ultraconservative OSBA members? Where were the union leaders as active PS teachers fought consequential layoffs over the past 4-years? Ohio unions have failed to get progressive thinking politicians elected to public office from the local school boards, to the legislature, and to the highest elected office in the state. Regressive thinking politicians, only wanting schools "on the cheap," do not do the math. Where have all the businesses gone? In our democracy, should we not make reasonable demands of our government and leaders? They are responsible for making good on their commitments.
3. Not enough revenue for the STRS HC/Rx is due to some union leaders failing their math in not demanding that the elected state representatives not pass the hurtful "Coordinated Retirement Plan" for the STRS. This plan allows members not to pay into the STRS HC/Rx fund. Therefore, some revenue is not going be there to grow the fund. Also, this cuts the numbers of retiree HC/Rx recipients who depend on and bargain for the STRS HC/Rx system. Prior to Medicare Service, many new retirees are not going into the STRS HC because they do better on the open market. This shorts the STRS. And, therefore, the STRS have fewer numbers of HC/Rx recipients to use in bargaining with the drug companies -- more is better. The union leaders also just do not do the math when they do not associate the fact that more people have to be paying in, not less. Additionally, it has been shown that the coordinated plans are a drain on the resources of retirement systems: They are using our investors for free brokerage service. In others words, our investors are investing their money for them. To emphasis this, the current NEA-R publication indicates that W.VA. is going away from the ACoordinate Plan@ and back to the ADefined Benefit Plan@. They were in it since 1990 and found that it did not work. We should all be under the one ADefined Plan@. Union leaders need the legislature, and the STRS, to get us out of this ACoordinated Plan.@. In general, it does not help the school systems either! And, additionally, when we lose the 401-Ks, the regressive power brokers will not be there for us.
4. Backed by backward thinking politicians, the faulty math of employee buyouts, the OSBA, and some union leaders, think that this saves money for the school districts. NOT. They do not associate that new hires pay less dollars into the STRS. And, the older employees they replace, therefore, become an early burden on the STRS. In the long run, that forces a commitment for the STRS to request higher employee/employer contributions. The Aearly outs@ draw on the STRS for longer periods of time. Retirement security with HC/Rx is, and has been, a major attraction for new hires looking to teach.
In conclusion, it is no wonder that some retirees are looking for ORC legislation to help us with our HC/Rx as well as with compounding the cost of living. The fair distributed and popular supplemental 13th heck that retirees had for 21-years was taken away -- some say it was taken away to pay for the STRS employees bonus awards. As you know, pennies, nickels and dimes are almost worthless now. To help with these inflationary expenses, some of those who retired in the last 5-years, to the present, have not had a 13th check. Make no mistake. We retirees totally support a steady stream of HC/Rx. But, we do not wish to throw out the hard work we did to get the legislature, years ago, to allow the 13th check that helps us with inflation. Go after the legislature, not retirees. Providing adequate funding is their responsibility, not ours. Demand adequate funding for public education. As well as the STRS retirees, the public and commercial businesses depend on it. It is the right thing to do. The focus should be on the complexity of the math, not the just on the one issue of HC/Rx for retirees. Why so much stress on STRS retiree unfunded liability when the government has it in Medicaid and prisoner costs?
To move retirees forward, some union leaders math approaches have been grossly inadequate. Setting meekly by while some wish to raid the STRS, and with the STRS "Coordinated Plan", funneling revenue away, and as the Charter Schools have intruded into the public school's fund, to me: this is incorrect math! It is time to spend union dues money on monitoring the STRS through the ORC 3307.15, while hiring any necessary lawyers, rather than on unions spending excessively in this age of electronics on delegates at hotels, on meals, and travel expenses for so many useless and expensive conferences. This is basic math. Let us work together, using our "gray power" to throw out regressive politicians, and other elected power brokers, who do not think progressively for children, their active/retired teachers, and our future.
In all due respect, submitted by
Robert Hudson Jones,
Life Mem.of NEOEA-R, OEA, OEA-R, NEA, NEA-R, ORTA, CORE, and Mem.SummitCRTA
In Hollow's recent hollow comment, appearing in my NEOEA-R publication, Vol.6, No.6, Feb. 2006, he failed to do his math homework for some of the retired STRS members. The legislature, the past STRS board/employees, and the educator's unions failed math, not the retirees -- especially some retirees.
1. Some rank and file retirees, who have the audacity to exercise their constitutional rights to question the decisions and actions of our public servants, are seen by the power brokers, as dangerous threats. These rank and file retirees have a firm grasp of higher math. They found the oversights that our union leaders, and the legislators, were neglecting to monitor at the STRS. This neglect led to loss of retiree/active income. The sense of entitlement by the STRS staff and board had gone on so long as to cause a massive rupture of our funds. These funds should have been compounding and growing the investments. And there was the failure of some investment staff to exit Enron, and other shaky investments, in time. Retirees made those math problems public, out of retiree frustration, by having the earned benefits of the 13th check and having our HC/Rx cut. Especially while the staff was receiving high bonuses and the board members partied on money that should have gone to retirees and active teacher members alike. Where were our active/retiree union leaders? Where were the two lawmakers who sat on the STRS board all those years, one now running for Ohio governor?
2. Also the math was not done in a shortfall of revenue to the STRS due to huge amounts of public tax dollars earmarked for public school districts illegally going into the pockets of the entrepreneurs of the hurtful private charter schools. The OFT is suing to prove it; where are the other unions? Charter schools do erode the public school districts' base. As a result, fewer numbers of active teachers are employed in the public schools, plus the consequence of less revenue in STRS, equal less revenue to generate and compound STRS investment income. The STRS now is forced to go to the legislature for an employer/employee increase. Who did not do their math? Could it also be some ultraconservative OSBA members? Where were the union leaders as active PS teachers fought consequential layoffs over the past 4-years? Ohio unions have failed to get progressive thinking politicians elected to public office from the local school boards, to the legislature, and to the highest elected office in the state. Regressive thinking politicians, only wanting schools "on the cheap," do not do the math. Where have all the businesses gone? In our democracy, should we not make reasonable demands of our government and leaders? They are responsible for making good on their commitments.
3. Not enough revenue for the STRS HC/Rx is due to some union leaders failing their math in not demanding that the elected state representatives not pass the hurtful "Coordinated Retirement Plan" for the STRS. This plan allows members not to pay into the STRS HC/Rx fund. Therefore, some revenue is not going be there to grow the fund. Also, this cuts the numbers of retiree HC/Rx recipients who depend on and bargain for the STRS HC/Rx system. Prior to Medicare Service, many new retirees are not going into the STRS HC because they do better on the open market. This shorts the STRS. And, therefore, the STRS have fewer numbers of HC/Rx recipients to use in bargaining with the drug companies -- more is better. The union leaders also just do not do the math when they do not associate the fact that more people have to be paying in, not less. Additionally, it has been shown that the coordinated plans are a drain on the resources of retirement systems: They are using our investors for free brokerage service. In others words, our investors are investing their money for them. To emphasis this, the current NEA-R publication indicates that W.VA. is going away from the ACoordinate Plan@ and back to the ADefined Benefit Plan@. They were in it since 1990 and found that it did not work. We should all be under the one ADefined Plan@. Union leaders need the legislature, and the STRS, to get us out of this ACoordinated Plan.@. In general, it does not help the school systems either! And, additionally, when we lose the 401-Ks, the regressive power brokers will not be there for us.
4. Backed by backward thinking politicians, the faulty math of employee buyouts, the OSBA, and some union leaders, think that this saves money for the school districts. NOT. They do not associate that new hires pay less dollars into the STRS. And, the older employees they replace, therefore, become an early burden on the STRS. In the long run, that forces a commitment for the STRS to request higher employee/employer contributions. The Aearly outs@ draw on the STRS for longer periods of time. Retirement security with HC/Rx is, and has been, a major attraction for new hires looking to teach.
In conclusion, it is no wonder that some retirees are looking for ORC legislation to help us with our HC/Rx as well as with compounding the cost of living. The fair distributed and popular supplemental 13th heck that retirees had for 21-years was taken away -- some say it was taken away to pay for the STRS employees bonus awards. As you know, pennies, nickels and dimes are almost worthless now. To help with these inflationary expenses, some of those who retired in the last 5-years, to the present, have not had a 13th check. Make no mistake. We retirees totally support a steady stream of HC/Rx. But, we do not wish to throw out the hard work we did to get the legislature, years ago, to allow the 13th check that helps us with inflation. Go after the legislature, not retirees. Providing adequate funding is their responsibility, not ours. Demand adequate funding for public education. As well as the STRS retirees, the public and commercial businesses depend on it. It is the right thing to do. The focus should be on the complexity of the math, not the just on the one issue of HC/Rx for retirees. Why so much stress on STRS retiree unfunded liability when the government has it in Medicaid and prisoner costs?
To move retirees forward, some union leaders math approaches have been grossly inadequate. Setting meekly by while some wish to raid the STRS, and with the STRS "Coordinated Plan", funneling revenue away, and as the Charter Schools have intruded into the public school's fund, to me: this is incorrect math! It is time to spend union dues money on monitoring the STRS through the ORC 3307.15, while hiring any necessary lawyers, rather than on unions spending excessively in this age of electronics on delegates at hotels, on meals, and travel expenses for so many useless and expensive conferences. This is basic math. Let us work together, using our "gray power" to throw out regressive politicians, and other elected power brokers, who do not think progressively for children, their active/retired teachers, and our future.
In all due respect, submitted by
Robert Hudson Jones,
Life Mem.of NEOEA-R, OEA, OEA-R, NEA, NEA-R, ORTA, CORE, and Mem.SummitCRTA
posted by Kathie Bracy at 6:45 PM
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