RH Jones speaks out: Hearsay or a good idea for STRS?

From RH Jones, September 30, 2006

Subject: Hearsay or a good idea for STRS?

To all:

Yesterday, at Brian Williams' 41st Distr. Rep. Re-election Fundraiser, I was privileged to talk to a retired state patrolman who told me that his retirement fund has three investment employees. Each year one is cut, if they do not produce. This makes for furious competition among the three of them; and the fund, therefore, grows far beyond the need to pay out retirement member obligations. In a like manner, perhaps our STRS should increase competition among the investors.

To expand on this, at the fundraiser, Dr. Fluke, the SummitCRTA VP & Legislative Chair, showed me an earnings chart, made public by our STRS, that illustrated growth since 1969 in our funds that was a steady slope that looked much like the ramp of an Olympic Ski Jump. At first glance, stopping at $65-billion, it looked great; but, after thinking about it, I realized that in this chart even with this upward ramp in the growth, after the payouts and expenses to operate the STRS, it was not growing fast enough to outstrip inflation! One can assume then that without the employer/employee increase, we will be the skier who jumps off the ramp to perhaps fall on our faces. I might add, this is why it is so very critical for us to get this legislation passed, and soon. One way or another, both the STRS members and their employees at STRS will be affected.

However, trusting politicians to pass this legislation is to gamble. In outstripping inflation, to trust in the competition between our STRS investor employees is a more sure bet. It is my hope that our STRS Bd. & employees will create this competitive environment in the investment department for the good of us all who depend on God, and the STRS, for the "bread of life".

Note: We, also, need to forever stay alert to any greedy politician who may wish to raid and divert our STRS funds to solve their various shortcomings.

Robert Hudson Jones, STRS retired member