Tom Curtis clears up questions from some actives

From Judy Long, May 04, 2006

Subject: Re: Fwd: 050306 Curtis To Loeffler, Praise To Board Members

Tom and Karen-

Thank you to both of you for taking the time to respond to my question. I am appalled at what has happened with STRS, and so glad there are people like you willing to get -- and stay -- involved so these people are held accountable.

Kudos to both of you!!!

Judy Long

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Loeffler to Curtis, May 04, 2006

Subject: Re: 050306 Curtis To Loeffler, Praise To Board Members

Tom,

Thank you so much for writing back. I will forward your response to Judy. I know that many people are reading the information I send out, so your efforts are noticed by many. Keep up the good work -- I do believe it is reaping benefits for many of us!!

Take care --

Karen : >

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Curtis To Loeffler, Wed, 3 May 2006

Hello Karen,

Yes, I can answer your question. Executive Director Damon Asbury reported to the board that during March 2006, STRS Ohio benefits counselors met with 932 members. (People considering retirement) This was the second highest recorded month for STRS Ohio ever.

My comment was in praise of those board members that first raised questions about this portion of Dr. Asbury's report. Later, they requested a change in the current practice of what the counselors are telling, or actually not telling members about the cost of the HC benefit beginning in January 2007.

*The 1st board member question was: What are counselors telling perspective retirees the cost of the STRS HC is likely to be in 2007, after they have retired?

** Answer: We are telling them there will be an increase in 2007, but at this time, we do not know how much of an increase. We are showing them the 2006 total cost of the HC benefit, if they had to pay such (ex. a non-teaching spouse or dependent child) and the cost of the 2006 HC benefit to the benefit recipient.

* 2nd board member question: Are you telling them what the projected cost will be after January 2007?

** Answer: No, because we do not know at this time what that cost will be.

* 3rd board member question: So, you are not telling them what to expect for 2007?

** Answer: No, as we do not know that for sure.

***Directive by board to Asbury: This is not acceptable for people considering retirement. You know the 2007 projected cost close enough to provide them with that information. These people can then consider if they are willing to pay that much for HC once retired, or continue their employment. Many may decide not to retire, due to the high cost of the HC benefit. However, once they retire that decision is final. Please begin providing the 2007 projected cost to the members, since it will increase by as much as 27-32% for a non-teaching spouse above the 2006 cost.

The comments above are not direct quotes, but my paraphrasing of what was said. There was more discussion on this topic then I listed, but this is the basis for my comment of praising the board members who raised these questions. The questions came from Dennis Leone and Steve Buser, and were supported by Judith Fisher and John Lazares. I feel they acted very responsibly in requesting this change in information provided by benefit counselors.

There are many educators in Ohio who have had board paid medical benefits for some or all of their entire career. The high cost of HC coverage when they retire will be a bitter pill for them to swallow. Many retirees have already had to adjust to these changes for the past 6 years. There are roughly 13,000 retirees between 80 to 107. With the HC increases for 2007, many of these older retirees with thirty years of service my not be drawing a pension large enough to pay for HC for themselves and a non-teaching spouse. Think about that dilemma? What choices will they have to make? This is a really depressing scenario to me.

I hope this clarifies my comment. If not, please write back.

Take care,

Tom Curtis

CORE Advisory Committee Member

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Karen Loeffler to Tom Curtis, May 03, 2006

Hi, Tom!

Can you help me out with this question? I forwarded your e-mail to our staff, but I no longer have the e-mails that explained this. Thanks for your help!

[An e-mail from Judy Long; quote from Curtis letter to STRS Board 04/30/06]: Karen Loeffler on Tuesday, May 2, 2006 at 9:08 AM +0000 wrote: In closing, I would like to add that I was very impressed by the board members who did take issue with the staff's manner in advising prospective retirees concerning the future cost of health care once they retired.

Karen - do you know what this is about? I haven't read all the emails you have sent, so if this is explained in another message, just send me that.

Thanks for keeping up on this!

Judy

[Quote from Curtis letter to STRS Board]: That was bold and right. This is the kind of direction the board should be giving. If this is looked at as micro managing, which really is not your job in the first place, then please find the right person to do it. I believe I can speak for the entire membership and state this is what the membership expects. We will not settle for less.