John Curry on HB 700 School Alternative Retirement proposal being pushed by Rep. Chuck Blasel
From John Curry, December 10, 2006
Subject: Update - yes it (House Bill 700) is what I thought it was
Note from John: I had a chance to read HB 700 in its entirety. Yes, it is what I thought - a vehicle to drain monies away from the STRS investments by offering new educators the option of denying their contributions & their employer contributions to STRS. Representative Blasdel (the sponsor of HB 700) forgot to mentin (in his bill) that commissions (paid from the teachers' salaries and local board's monies) will go into the wallets of investment companies for profits rather than into STRS for service. And now, something additional that Representative Blasdel didn't tell you about himself in the bill:
"Blasdel runs his own investment adviser firm, Blasdel Financial Group, and has property holdings in eastern Ohio."
Enough said? John
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From John Curry, December 08, 2006
Subject: "Alternative (?)" retirement plans for Ohio teachers ???????
INTRODUCED
HB 700 SCHOOL ALTERNATIVE RETIREMENT (Blasdel) - To require school boards to establish alternative retirement plans for teachers and school employees. Am. Secs. 3105.80, 3305.01, 3305.03, 3305.04, 3305.05, 3305.052, 3305.053, 3305.06, 3305.061, 3305.07, 3307.01 and 3309.01.
Note from John: Does anybody know anything about this? "Alternative" retirement plans? ??
- - - - -
Posted on Fri, Dec. 08, 2006
Legislative floor actions
Associated Press
COLUMBUS, Ohio - Legislative floor actions in the House of Representatives and Senate from Thursday, Dec. 7.
[Excerpt only posted below. KBB]
HOUSE
INTRODUCED
HB 700 SCHOOL ALTERNATIVE RETIREMENT (Blasdel) - To require school boards to establish alternative retirement plans for teachers and school employees. Am. Secs. 3105.80, 3305.01, 3305.03, 3305.04, 3305.05, 3305.052, 3305.053, 3305.06, 3305.061, 3305.07, 3307.01 and 3309.01.
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From John Curry, December 08, 2006
Subject: Here's a link to the "alternative" teachers retirement (HB 700)
This is long and in "legalese," but you might want to take a look at what Rep. Blasdel is proposing in reference to "alternative" retirement participation by teachers and other public employees (House Bill 700). I have not had time to study it in detail, yet. John
Click here to read Blasdel's proposal.
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Rep. Blasdel's former actions and statements
The legislature is now fully involved, and a lot of teachers and retirees are unhappy about it.
Many complain that the Ohio House has hijacked a bill that was supposed to improve accountability at their pension fund, and turned it into a vehicle to feed business to Ohio firms - and perhaps reward campaign contributors.
"Sometimes, when the legislature gets involved, they make more of a mess of it than when they started," said Marianna Lijoi, a teacher in Eastlake who rallied others to push for reforms.
The Ohio House and Senate approved competing bills last week to improve oversight of Ohio's five public-employee retirement systems, which have a total of about $115 billion in assets. Both bills require the pension boards to conduct independent reviews of management and investment practices and adopt ethics and travel policies.
But the House bill goes further, mandating investment quotas for all five pension funds, requiring them to use Ohio-based brokers and investment managers for most of their equities trades. The bill also would give new powers to state Treasurer Joe Deters, allowing him to hire and fire the pension boards' executive directors, with the consent of the boards.
Senate leaders oppose the investment quotas and the new powers for Deters, as does the Ohio Retired Teachers Association. Lawmakers are trying to work out a compromise bill before the legislature adjourns in December.
Also, the Ohio Ethics Commission has raised concerns about giving Deters the authority to appoint the pension directors. In a letter, the commission asked legislative leaders and Gov. Bob Taft to consider "the potential for conflicts of interest that can arise from various sources of campaign contributions, such as funds from vendors, consultants or organizations" doing business with the pension funds and the treasurer's office.
Teachers and retirees deluged lawmakers with letters, e-mails and phone calls after The Plain Dealer published a story in June about lavish spending on travel, artwork and employee bonuses at the State Teachers Retirement System. At the time, the fund was losing $12.3 billion in assets.
Now, many teachers and retirees say the possibility of investment quotas and new powers for Deters has fueled their distrust of the legislature.
"When I found out about it, I could hardly talk," said Susan Jacoby, a retired teacher from Canton. "I just felt like I never should have done anything."
Supporters of the bill argue that pension officials are misleading retirees in an attempt to prevent any bill from passing. The bill would not require the retirement systems to invest in Ohio companies. It would require them only to use Ohio firms to conduct trades in any equities the pension funds choose.
"They're not getting away this time," said Rep. Michelle Schneider, a Cincinnati Republican who sponsored the House bill. "They are going to have to reform. The abuses are going to go on no longer."
Pension officials have said they support many of the oversight provisions, but they oppose the investment provisions and giving new authority to Deters. They argue that there aren't enough qualified Ohio brokers and investment managers to handle such a large volume of trades.
The state's two biggest funds, STRS and the Ohio Public Employees Retirement System, estimate the investment quotas would cost them as much as $150 million a year in increased costs and investment losses.
Schneider's bill started off simple enough. It added a retired teacher to the STRS board and removed an active teacher.
"That's all we wanted, another retired member on the pension board," said Duane Tron, president-elect of the Champaign County Retired Teachers in western Ohio.
But after spending abuses were also exposed at the Ohio Police & Fire Pension Fund, the bill gained momentum and became a vehicle for much more.
State Rep. Chuck Blasdel, an East Liverpool Republican, said he was the author of the investment quotas.
Blasdel is chairman of the House Banking, Pensions and Securities Committee, and he works as an investment adviser. However, he said, his firm would not qualify for business from the pension funds because he handles only personal investments.
Blasdel said many of the nation's largest investment firms would qualify as Ohio-based brokers because they have offices in Ohio. Others could be persuaded to open or expand offices in the state.
"What we are doing is interrupting a gravy train that they have had for years," Blasdel said of the pension funds. "They don't want more oversight."
But Dennis Leone, the Chillicothe school superintendent who first exposed excessive spending at STRS, said he worried from the start that the legislature would go beyond increasing accountability.
"We welcome a reasonable amount of legislative oversight," Leone said. "But that's a lot different from legislative control."
From John Curry, December 09, 2006
Subject: Rep. Blasdel's former actions and statements
(From John): Rep. Blasdel has recently introduced an "alternative pension" bill in the Ohio House (HB 700). I haven't had time to digest it in its entirety, but I did find an article (below) in which he pushed the Invest Ohio provision in a failed previous house bill (pension reform -- the Senate's version won out). In that, he was pushing for the state pension systems to only invest with Ohio investment firms as quoted by former Cleveland Plain Dealer investigative reporter, Stephen Ohlemacher: "It would require them only to use Ohio firms to conduct trades in any equities the pension funds choose."
So, the bottom line is, check this proposed House Bill out (HB 700) and go through it with a fine-toothed comb. Does Mr. Blasdel have a wish to funnel some of the pension system's money to his investment firm? Mr. Ohlemacher said about Rep. Blasdel in 2003: "However, he said, his firm would not qualify for business from the pension funds because he handles only personal investments."
John Lazares has advised me that he will be checking on this bill the first of next week. Until then, check out Mr. Blasdel's previous statements and opinions in the three-year-old flashback below:
-----
Pensioners fear legislature will ruin system
November 19, 2003
Stephen Ohlemacher
Plain Dealer Bureau
Columbus- When teachers started complaining about spending abuses at their retirement system last summer, some whispered that it might be unwise to get the state legislature involved.
Subject: Rep. Blasdel's former actions and statements
(From John): Rep. Blasdel has recently introduced an "alternative pension" bill in the Ohio House (HB 700). I haven't had time to digest it in its entirety, but I did find an article (below) in which he pushed the Invest Ohio provision in a failed previous house bill (pension reform -- the Senate's version won out). In that, he was pushing for the state pension systems to only invest with Ohio investment firms as quoted by former Cleveland Plain Dealer investigative reporter, Stephen Ohlemacher: "It would require them only to use Ohio firms to conduct trades in any equities the pension funds choose."
So, the bottom line is, check this proposed House Bill out (HB 700) and go through it with a fine-toothed comb. Does Mr. Blasdel have a wish to funnel some of the pension system's money to his investment firm? Mr. Ohlemacher said about Rep. Blasdel in 2003: "However, he said, his firm would not qualify for business from the pension funds because he handles only personal investments."
John Lazares has advised me that he will be checking on this bill the first of next week. Until then, check out Mr. Blasdel's previous statements and opinions in the three-year-old flashback below:
-----
Pensioners fear legislature will ruin system
November 19, 2003
Stephen Ohlemacher
Plain Dealer Bureau
Columbus- When teachers started complaining about spending abuses at their retirement system last summer, some whispered that it might be unwise to get the state legislature involved.
The legislature is now fully involved, and a lot of teachers and retirees are unhappy about it.
Many complain that the Ohio House has hijacked a bill that was supposed to improve accountability at their pension fund, and turned it into a vehicle to feed business to Ohio firms - and perhaps reward campaign contributors.
"Sometimes, when the legislature gets involved, they make more of a mess of it than when they started," said Marianna Lijoi, a teacher in Eastlake who rallied others to push for reforms.
The Ohio House and Senate approved competing bills last week to improve oversight of Ohio's five public-employee retirement systems, which have a total of about $115 billion in assets. Both bills require the pension boards to conduct independent reviews of management and investment practices and adopt ethics and travel policies.
But the House bill goes further, mandating investment quotas for all five pension funds, requiring them to use Ohio-based brokers and investment managers for most of their equities trades. The bill also would give new powers to state Treasurer Joe Deters, allowing him to hire and fire the pension boards' executive directors, with the consent of the boards.
Senate leaders oppose the investment quotas and the new powers for Deters, as does the Ohio Retired Teachers Association. Lawmakers are trying to work out a compromise bill before the legislature adjourns in December.
Also, the Ohio Ethics Commission has raised concerns about giving Deters the authority to appoint the pension directors. In a letter, the commission asked legislative leaders and Gov. Bob Taft to consider "the potential for conflicts of interest that can arise from various sources of campaign contributions, such as funds from vendors, consultants or organizations" doing business with the pension funds and the treasurer's office.
Teachers and retirees deluged lawmakers with letters, e-mails and phone calls after The Plain Dealer published a story in June about lavish spending on travel, artwork and employee bonuses at the State Teachers Retirement System. At the time, the fund was losing $12.3 billion in assets.
Now, many teachers and retirees say the possibility of investment quotas and new powers for Deters has fueled their distrust of the legislature.
"When I found out about it, I could hardly talk," said Susan Jacoby, a retired teacher from Canton. "I just felt like I never should have done anything."
Supporters of the bill argue that pension officials are misleading retirees in an attempt to prevent any bill from passing. The bill would not require the retirement systems to invest in Ohio companies. It would require them only to use Ohio firms to conduct trades in any equities the pension funds choose.
"They're not getting away this time," said Rep. Michelle Schneider, a Cincinnati Republican who sponsored the House bill. "They are going to have to reform. The abuses are going to go on no longer."
Pension officials have said they support many of the oversight provisions, but they oppose the investment provisions and giving new authority to Deters. They argue that there aren't enough qualified Ohio brokers and investment managers to handle such a large volume of trades.
The state's two biggest funds, STRS and the Ohio Public Employees Retirement System, estimate the investment quotas would cost them as much as $150 million a year in increased costs and investment losses.
Schneider's bill started off simple enough. It added a retired teacher to the STRS board and removed an active teacher.
"That's all we wanted, another retired member on the pension board," said Duane Tron, president-elect of the Champaign County Retired Teachers in western Ohio.
But after spending abuses were also exposed at the Ohio Police & Fire Pension Fund, the bill gained momentum and became a vehicle for much more.
State Rep. Chuck Blasdel, an East Liverpool Republican, said he was the author of the investment quotas.
Blasdel is chairman of the House Banking, Pensions and Securities Committee, and he works as an investment adviser. However, he said, his firm would not qualify for business from the pension funds because he handles only personal investments.
Blasdel said many of the nation's largest investment firms would qualify as Ohio-based brokers because they have offices in Ohio. Others could be persuaded to open or expand offices in the state.
"What we are doing is interrupting a gravy train that they have had for years," Blasdel said of the pension funds. "They don't want more oversight."
But Dennis Leone, the Chillicothe school superintendent who first exposed excessive spending at STRS, said he worried from the start that the legislature would go beyond increasing accountability.
"We welcome a reasonable amount of legislative oversight," Leone said. "But that's a lot different from legislative control."
posted by Kathie Bracy at 11:11 AM
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