Paul Boyer's speech to STRS Board September 14, 2006

Here is a copy of my speech today for all you good people, along with what I remember of my ad-lib and the reason for it. It is coming to you as an attachment and in the body of the letter for those of you who can not open my emails.

Paul

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9-14-2006

Good morning, Board members, Dr. Asbury, retirees and guests. As you know, I am Paul Boyer representing myself and Allen County retirees. I wrote this speech originally for the June meeting but was unable to attend it and others since then. I have not had to make many changes in the speech because it is still very viable for your actions to this day.

I want to give the board members a great big Thank you for the way you have handled our HC costs for 2006. Not only did you save us from all the horror stories that were told of people trying to find the best Medicare D plan, but you are using some of the rebate money to hold our costs in line, both in monthly premiums and co-pays. That has been a tremendous benefit to all of us retirees and we certainly do appreciate it and applaud you for it. And the $1500.00 co-pay maximum for the year is a great help. Already my wife has spent $1,013.00 and I have spent $714.00.

Because of my worsening health problems I have not been able to attend some of the recent board meetings but I do read the emails and keep abreast of what has been going on. We elected Dr. Dennis Leone as one of our retiree members of the board and persuaded the active teachers to elect John Lazares as a contributing member. It seems, however, that these two men are being stymied in their efforts to cut down expenses. To your credit, I must say that you have voted yes with them on a few of their motions which has saved a lot of money in the budget.

What does the Ohio Revised Code 3307.15 say about the fiduciary duties of the board members?

Here it is.

ORC 3307:15 SAYS:

The board and other fiduciaries shall discharge their duties with respect to the funds "solely" in the interest of the participants and beneficiaries; for the "exclusive" purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the system; with care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims; and by diversifying the investments of the system so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so. (I had printed this in the largest type I could, scotch taped the sheets together and hung them on the front of the podium)

As you review your decisions in the past few months can you sincerely say that you have followed this law? You have voted down motions to require written documentation on any money item before voting on it and have voted on a couple in that manner. How can you be sure you know what you are voting on when you do that?

Now, gentlemen and ladies, it is about time that you sit down and memorize this, if necessary, and change your attitude because we retirees are not going to stand for any more nonsense. This is our money, not yours to spend as you see fit, as the former Executive Director Mr. Dyer wrote to a retiree. And we continue to demand that it be spent wisely on retirees and their beneficiaries.

Paul L. Boyer

I will now ad-lib: Today, I have witnessed the worst incompetence of leadership of the STRS Board of any board I have ever been on of all the many boards I have experienced in my 81 years. I am scared for this Board under this leadership! The leadership of the board must change along with possibly the leadership of the retirement system!

(By way of explanation, here is the reason for the ad-lib. The board was quite late in coming back after lunch and we still had to do the swearing-in of Mark Mueser and hear Damon’s report. After his report, the chair asked if the board members had any questions. I can not remember all that followed because I actually could not hear it all. Somewhere along the line, Dr. Leone brought up his motion, which was defeated, to not vote on any money matter without having printed copies to peruse or at least the main points. Some hot discussion followed, and the next thing I knew, John Lazares jumped up, said (loudly, to Damon) he did not have to be insulted by a board member and walked out of the meeting. I later found him down in the parking lot on my way out. Molly has sent out a letter which you will probably all receive that very carefully explains it. The chair then went on as though nothing had happened.

(I just could not let that pass by.)