Molly Janczyk: STRS:Exec.Direc.Report from STRS: HB 152, 151, 71; AOL settlement,speeches

From Molly Janczyk, April 19, 2007
Subject: STRS:Exec.Direc.Report from STRS: HB 152, 151, 71; AOL settlement,speeches

STRS Exec Direc Report:

It includes the introduction of HB 152 introduced by Rep. Chris Widener, chair of the Financial Institu., Real Es. and Securities Comm.:

Rep. Widener: district84@ohr.state.oh.us
614-466-1470

Ohio House of Representatives
77 S. High St
Columbus, OH 43215

This bill would require school boards to offer private vendor alternative retirement plans to teachers and school employees and is identical to HB700 introduced during the lame duck session. This would have a negative impact on STRS reducing contributions and be harmful to young educators fooled into thinking they could save enough for their HC in retirement which is not possible on an educator's salary and totals on average $240,000.

PLEASE CONTACT REP WIDENER AND YOUR LEGISLATORS SAYING NO TO HB152!!!!!!!!

HB71 became effective March 29, 2007 allowing for the purchase of active duty service with the Ohio Nat'l Guard and reserve components of the U.S. armed forces.

HB151 that requires divestiture by retirement systems of any foreign companies doing business in Iran is tentatively scheduled for its first hearing on 4/19/07. We have no known investments with Iran.

Other items will be included.

FOR COMPLETE SPEECHES OF DAVE PARSHALL, BOB BUERKLE, JIM REED today at STRS, go to: www.kathiebracy.blogspot.com where they are posted.

AOL: STRS's claimed loss was $184,704,438 and recovery was $66.5 million - only 36% of the combined loss experienced by our pension and HC funds. Proper accounting is to proportionately divide the recovery between the pension and HC fund based on respective losses. An allocation to the HCSF cannot be greater than the total losses incurred by that fund. All STRS members incurred losses and should rightfully share in recovery.

While STRS has some discretion regarding these funds, due to liability at 47.2 yrs, and a funding ratio well below of at least 85%, staff recommends no add'tl action be taken and that this partial recovery not be viewed as a windfall but must be allocated proportionately among the pension and HC funds that experienced loss.