RH Jones and Molly Janczyk re: Smoothing

RH Jones to Molly Janczyk, March 11, 2007
Subject: Re: 13th cks and COLAS: Ohio STRS to get 66.5 mil for AOL "cooking the books"

Molly,

"Smoothing" was done for 3-yr. periods up to a couple of yrs. ago. Then, it has been arbitrarily raised to 4-yrs. To no avail, Dr. Fluke & I objected to this at a STRS board meeting. In another couple years will STRS arbitrarily raise it again? I wonder: Did the board vote to do this? I do not know. To me, "smoothing" is the averaging of the total funds in relation to the total liabilities. I think it may be done quarterly. In my opinion, "smoothing" is just a way to keep retirees from the HC/Rx they need and to fail to issue the 13th ck. to retirees. Where are the thoughtful statesmen & women of old when our supplemental check and HC/Rx was first granted to us?

RHJones
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From Molly Janczyk, March 11, 2007
Subject: Re: 13th cks and COLAS: Ohio STRS to get 66.5 mil for AOL "cooking the books"

You know, smoothing is something I don't fully understand. I think it is a 4 yr period to even out funds generally, but that's all I get from it.

Does it mean, if we lose big, we look over 4 yrs. to recoup some losses and if we gain big, we need to watch for 4 yrs to see if we lose during that time and so every 4 yrs. we have this kind of deal going on? I really don't grasp it.

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From RJ Jones, March 10, 2007
Subject: Re: 13th cks and COLAS: Ohio STRS to get 66.5 mil for AOL "cooking the books"

Molly,

They fail to mention that they "smooth" the funds to arrive at the 47.7 yrs. Smoothing should not be required by the ORC in regard to the 30-yr. unfunded liability. The board can give us a little more help with our HC, at present, if they would wish to do so. They could also issue a 13th ck., if they would wish to. It seems that we retirees are not a priority with them.