Dennis sets the record straight re: Rehires & benefits

From Dennis Leone, Friday, July 21, 2006

To: Mary Ann Kannam

Subject: Bill on Rehired Retiree Teacher Benefits

From: Dennis Leone, STRS Board Member

Mary Ann -- This email pertains to your Lake Local School District article that quoted a school board member who claimed that the State Teachers Retirement System "has a bill" to eliminate health insurance for rehired retirees. There is no such bill.

Perhaps what the school board member was referring to was the fact that proposed House Bill 272 -- sponsored by State Representative Michele Schneider --- had language that was designed to prohibit rehired retirees from utilizing the STRS health insurance plan. This provision of H.B. 272 has been removed from the bill, not because Ohio's lawmakers are in favor or against such a change, but because they realized that Ohio's public pension boards have the power to institute the provision on their own.

Having said the above, I am in a minority on the STRS Board regarding this issue. I am in the camp the believes that rehired retirees should not be allowed to utilize STRS health insurance. It is troubling to me that so many school districts are using STRS to reduce their own health insurance costs. It is also troubling to me that in the bigger picture, new teacher talent and new administrative talent are getting passed over in favor of the easier route -- immediately re-employing educators after they retire. Hundreds of teachers and administrators who have been laid off around Ohio due to their school districts' financial constraints are not even given a chance to apply.

What is convenient for the local school districts may not be helping the future of our profession in the long run.