Dennis Leone to an active (and to STRS Board): How rehiring retirees hurts us all

"Last year, rehired retirees using STRS health insurance paid $3 million in premiums. Their claims cost $4.5 million."

From Dennis Leone, June 4, 2006

Subject: Rehired Retirees

Hello Rich -- John Curry forwarded me your email. Thank you for your supportive comments. I am very sorry to read that you were laid off recently.

While it basically fell on deaf ears, I gave a brief speech to my fellow STRS Board members on May 19 about how our profession is being hurt by school boards and administrators who are choosing to immediately rehire retirees instead of filling open positions with new teachers or laid-off teachers from other districts. I also know that many, many principals are getting plain lazy and simply don't want to be bothered with looking for new people. In my area, Columbus has recently laid off 214 teachers and the Southwestern City School District (in Grove City) has laid off 170. Were any of them even considered by my former district (Chillicothe) for four teacher openings there? No. Four retirees were swiftly rehired at the May school board meeting, five seconds after they retired. As an STRS Board member, I also resent school districts "using" STRS as a way to reduce their health insurance costs. Last year, rehired retirees using STRS health insurance paid $3 million in premiums. Their claims cost $4.5 million. For me, it is a black and white and issue.

Dennis Leone