Letters from retirees on rehiring

From Nancy Boomhower, July 24, 2006
Subject: Re: Rehire of Teachers & STRS

I keep thinking about this issue of rehirees and STRS insurance coverage. I wonder if we are considering all of the facts. One: these people are eligible for the insurance since they worked and paid in all of the required years and if they were not rehired, they would be receiving the insurance. Two: These people are paying into the STRS at the same 10% as other educators and the school systems are paying in the same 14% for them. Also, now 9% of what the school system pays in goes to other areas and only 5% goes into the rehirees accounts. Three: these people must be fairly healthy or they wouldn't be working so they help balance out the pool of insurees so we don't have all sickees. Have all of these factors been considered? The school systems are the ones who benefit from this arrangement. These rehires would probably have better coverage if they received it from the school rather than STRS. I know I did. Perhaps we need to have the info as to where the 9% goes and where the 14% paid into STRS by actives goes. Just some issues to investigate and think upon.

Nancy Boomhower
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From Jim Kimmel, July 24, 2006
Subject: Re: Rehire of Teachers & STRS

It is happening all over, several in Warren county and Mason, Kings, etc and Lakota. Looks like everybody is on the gravy wagon and the retirees are in the traces. If the health care fund is in such bad shape why in the WORLD would they deplete it more when retirees are getting whopping big retirement checks (cpompared to those who have retirred even a few years ago and then get a 10 year or so salary AND STRS health care. Of course they do pay in and they say it is a wash but I wonder if we can even get reliable data to see if it is hurting or helping the fund.

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From: (a retiree), July 20, 2006
Subject: Rehire of Teachers

John,

Today I received the Bluffton News (a weekly newspaper) and the big news was that the board rehired a teacher, making her the fourth teacher since this has been an option. She was rehired by a 3-2 vote. The two that voted against her were not against her, or her teaching, but on the basis that there is a bunch of new teachers waiting to be hired. The superintendent of the Bluffton mentioned about the cost saving to the system, since the STRS picks up the health insurance at a saving of $10,000 per teacher rehired. The board of education wail decide at the next meeting if they want to rehire this same superintendent of Bluffton Schools who is eligible to be rehired, and of course, that is what he hopes the board will do.

That will make five rehires just in one school district--$50,000. When will the STRS start to face the issue of this rehire cost to the STRS health program. The STRS has let another year slip by.

When will the STRS think about helping those who retired before all these perks started to level the playing field? Since the health fund is low, but the pension fund is in good shape, how about reinstating the 13th check to those who retired before 1998?

Bill