Ryan's two cents' worth and Nancy agrees: How rehires impact the system

From Nancy Hamant, June 13, 2006
Subject: Fwd: Ryan's $ .02 worth - I agree!

I agree with Ryan. In addition, the impact of those retiring after 1999 with 35 years that gets them an 88% calculation for their benefits versus those who retired before 1999 with the same service who only get 66% calculation; the impact of rehires use of STRS health insurance on the STRS HC Stabilization fund; the impact of lower than expected employer contributions -- due mainly to lower teacher salaries; the impact of Charter schools contributions to STRS due again to low, low salaries; and the growing but unknown impact of teachers selecting "defined contribution" (now at 15% of contributing teachers) plan versus "defined benefit" plan ALL WILL HAVE A MAJOR IMPACT ON THE HEALTH OF THE STRS PENSION FUND AND HEALTH CARE STABILIZATION FUND! WE NEED ACTUARIAL PROJECTIONS OF WHAT ALL OF THE ABOVE IS DOING TO OUR STRS FUNDS!

Nancy (Hamant)
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Ryan Holderman to John Curry, June 13, 2006
Subject: Re: Another double-dip and the logic(?) as it relates to STRS

Dear John:

I would love to see statistic on how prevalent this is among administrators. In our area it seems to be done rather frequently. Interestingly, if a teacher tries to do the same he / she is rehired but at a significantly lower step on the salary scale. Superintendents and principals seem to come back at virtually the same salary. One in particular that I'm aware of retired one day at a salary of $110,000 and was rehired the next at $99,000. Not bad! :-(

Perhaps the OSBA should look into this practice rather than ranting about increasing contributions that would benefit all retirees.

That's my $.02 worth,
Ryan