Saturday, June 23, 2007

Molly Janczyk: Summary of minutes of May 2007 STRS Board meeting

From Molly Janczyk, June 23, 2007
Subject: 5/07 STRS Board Minutes: Health Care, Webcasting, PBM, Travel: RX coinsurance?
Each month I receive the typed STRS Board Minutes complete with comments and voting on issues. ANYONE CAN REQUEST THESE MINUTES OR AN AUDIO TAPE OF THE MINUTES FROM STRS: Joyce Baldwin, Damon Asbury's Ass't. BaldwinJ@strsoh.org
The minutes come in the mail about a month after the meeting. May's meeting included HC items and Webcasting.
1. Webcasting: pg. XVII Greg Taylor, Direc. of Information Technology Services (ITS) provided examples on cost and examples of technology for meetings to be broadcast over web with audio and video like a live broadcast.
To provide this type of service, ITS would need to make hardware and software upgrades including upgrades in the computer room and for the cameras in the Board Room with a start up cost of about $16,000. In addition, STRS Ohio Internet connection was not designed to handle a broadcast and staff would recommend a third party to help manage the load. Assuming 75 people per meeting viewed the feed simultaneously, the cost would be $900 per meeting. Additional staff would be needed. As with TV, it would take an associate or 2 to run cameras and perform vital tasks.
Laura Ecklar stated the genesis of considering webcasting came from a retiree at a meeting. Staff currently prepares audio CD recordings of each meeting and mails them free of charge to any member of the public who requests them. 11 people receive the CD recordings monthly so there seems not to be much demand.
Craig Brooks said since this request seems to have been from a small number of retirees, it seems the question is whether it makes sense to spend the money. He recommended the Board direct the staff to perform a survey to determine interest.
He also asked about the technology requirements for the end user (recipient of webcast).
Taylor replied in order to receive the webcast, viewers needed broadband Internet connection and a fairly recent PC (computer) or Mac as well as software this is commonly used for video and audio such as Apple Quicktime or Windows Media Player.
Cervantes asked if Committee members have heard members asking for this.
Ramser stated one or two wish to listen to live broadcasts but many retirees do not use Internet or computers.
Leone said he has had quite of bit of positive feedback on this but he thinks we need a survey before spending the money.
Meuser, Chair of the Committee on Webcasting introduced the second item of discussion on this topic: legal and policy considerations of webcasting.
Neville commented that the Board is only required to have a public board meeting and is not required to make or provide recordings but to have minutes available. He said everything the Board does beyond that subjects the Board to scrutiny which could focus on misstatements or offhand comments which are corrected before minutes are approved. ((For ex., someone misspeaks and then corrects themselves-someone could hijack the error only or use words out of context)). (I have to assume that Strickland's position on live broadcasts has limitations as no one argued this point and different agencies at times fall under different rulings).
Ramser expressed concern of cut and pasting to misrepresent what was said or to mock the Board with the possibility of the Website: "YouTube" as a place where snippets of the Board Meetings could end up.
Ecklar noted other issues: Staff and Board Members would have to be extremely diligent about correcting any misstatements by themselves or attendees as these could go unchallenged and appear to viewers as intentional. This will alter tone, dynamics and environment.
Broadcasts can change behavior of participants as with Columbus Public Schools broadcasts where grandstanding, theatrics and playing to the audience have resulted. ((Who doesn't remember Bill Moss showing up in fatigues)).
Ecklar cited multiple avenues of communication with membership: newsletters, Website, Board News, email news service, tapes and minutes provided. She suggested proceeding cautiously on this issue due to costs and pitfalls as well as lack of demand for CD recordings.
Chapman stated webcasting should only be offered if there is a demand and asked about archiving. Taylor said long term archiving is not compatible with using meeting minutes as records so short term archiving is more appropriate.
Leone said members are not as interested in minutes as seeing what the Board is doing, the thought process as well as the decisions.
Ramser commented on a lot of dead space as they don't always know when they will begin or end.
Brooks again said a survey is needed to find out what members want.
Taylor clarified if a webcast didn't need to be live, non meeting time could be removed and staff could post the broadcast of the meeting in sections on the STRS Ohio Website.
Leone thought that would be acceptable if available within a couple of days after meetings.
Chapman asked if this would use less broadband and Taylor responded this would eliminate or reduce the amount of money STRS Ohio would have to spend on outside firms since we would not see significant simultaneous demand.
Meuser asked the Board to decide possibility and implications of tampering with the broadcast.
Cervantes suggested feedback from Board members who talk with membership.
Leone said Ecklar raised important considerations and concerns for the Committee to consider at the next meeting.
All approved the foregoing report for review and the adoption of the recommendations of the Committee.
************PLEASE CONTACT A BOARD MEMBER WITH YOUR FEELINGS ON WEBCASTS to ensure you are heard.

2. Pharmacy Benefits Manager (PBM) OUS has asked to join OPERS, SERS, STRS on selection of a PBM. This increases the market presence and expertise in this matter.
3. Health Care (HC):
Nickell: Voluntary Medicare Advantage Plan could offer lower premiums, care management support and easier claims as no coordination of benefits with Medicare. Impact to HCSF could not be determined until recipients known.
OTC Prilosec, etc. discussed and info on this has been sent to you.
Bierdeman: Governor to take neutral position on HC legislation which is not unusual. HC legis. team also trying to involve employers and area meetings has been discussed along with strategy.

Russell: ARP (Offering Alternate Retirement Plans) : HB152: if successful, past selection rate will not be accurate as Private Vendors would aggressively market their products to new teachers in highly paid school districts and STRS Ohio benefits MAY NOT be accurately described as has happened in past with vendors saying ARP's are not affected by Soc Sec windfall and offset provisions.
Financially, new educators will select between STRS Oh at 12.5% of pay compared with ARP at 10% of pay and employers would have a financial incentive to guide new employees towards ARP's to avoid HC contributions to STRS.
Rehires would be eligible for a larger match at 105% the way the current bill is written for ARP's but only 50% with STRS as they would no longer be considered a teacher under the current bill so not under any reemployment restrictions (??????).
4. Travel Policy:
Leone move and Hayden seconded a motion that due to impending 15-20% inc. in HC for non medicare retirees and the increase in budget, a moratorium be placed on out of state Board travel not intended to stop inservice but in support of a comment of Aristotle Hutras, exec. direc of Ohio Retirement Study Council (ORSC) during the Board retreat stating you do not have to go to Florida for a good meeting. Leone feels more aggressiveness need be made to bring programs here and educational conferences be held in state.
Meuser lauded his in state program held in Jan. as excellent but feels not every institution comes to Ohio and the Board cannot cut itself off from opportunities.
Brooks supports continuing education and offered a limit of one conference per year or two as a compromise.
Leone cited attending out of state Board meetings did not make better Board Members using 8-2 voting record of the Board to view big ticket vendor contracts as an example. As a retiree, his HC increases by actions of the Board, so he is not in favor of educational expenses.
((Leone did not expect this to pass, but made this motion as a statement of sorts on policy. The original motion passed with Leon voting no, Brooks and Hayden abstaining and all others voting yes on the passage of educational expenses)).
Leone and Brooks also expressed concerns on the budget being too high and Leone said he would be watching expenditures in travel for following guidelines.
QUESTION: PLAN DESIGN AND PREMIUM CHANGES FOR 2008:
page. III: Recommended changes:
1. LOOK AT USING COINSURANCE INSTEAD OF COPAYS FOR RX DRUGS
PLEASE TELL ME 20% of a cost is NOT being considered as it would be prohibitive!

Investments in Iran

From Molly Janczyk, June 23, 2007
Subject: From ORTA: Iran/Sudan Related Companies: HB151
I received this from ORTA: Ann Hanning! Thank you, Ann!
I received a list of 74 companies in the mail from ORTA which was shared at the June 20. 2007 ORSC (Ohio Retirement Study Council) meeting. ORSC oversees the 5 Ohio Pension Systems. The note was :
'Molly, FYI: This was shared at the ORSC meeting, 6/20/07. Ann'
ORSC: www.orsc.org for detailed info and comparisons of the 5 systems.
Each system's rate of return for its international equity portfolio was included as of 12/31/06 for the past one, three and five year periods compared to the rate of return for its direct holdings in companies on the ISS list for the same periods.
International equity indices for developed markets and emerging markets with and w/o the companies appearing on the list is shown for the past 1,35 year periods for comparative purposes.
STRS Ohio Internat'l Return:
1 year: +25.01%
3 year: +23.72% per year
5 year: +17.62% per year
Returns of any of those 74 Iran/Sudan companies that were owned by STRS Ohio that are included in the STRS Ohio actual International Return:
1 year: +34.71%
3 year: +36.70% per year
5 year: +33.32% per year
Summary of STRS Exposure to Iran and Sudan Companies as of 12/31/06: 35 companies including some on lists from other day AND: Samsung, Rolls Royce, Mitsubishi, Oil & Nat'l Gas Commission to name some of the more recognizable companies.
These companies as reported by Steve Mitchell have no goal of sustaining or supplying terrorists with money and are companies who do business in Iran and Sudan providing jobs for citizens.
The STRS total holdings amount for these 35 companies is: $1,282,960,193.18 which would be affected of our money.

Benjamin is still at it!

From John Curry, June 23, 2007:
It is evident that Israel's former Prime Minister is still attempting to cajole state officials of some U.S. states to pressure their respective pension funds to divest. Looks like Arnold (of movie fame and current CA Governor) was the latest attempted contact according to Israel National News. I wonder if Ohio's Ted Strickland and/or other Ohio state officials have been contacted?
It looks like government officials in Massachusetts, Connecticut, and Rhode Island have also been contacted by the former Prime Minister during the past week. Don't you think Ohio has a lot more $$ in its public employees' pension funds than our nation's smallest state? Check out today's Israel National News article by clicking on the link below. I admire Israel's rightful efforts to fight terrorism but... should our pension investments (and related divestment losses) be used to fight their war? Will Husted's brokered agreement with Ohio's pension funds pacify Benjamin's desires and stave off further Ohio legislative initiatives?
John
7 Tammuz 5767, June 23, '07
IsraelNationalNews.com
Published: 01/29/07, 8:30 AM / Last Update: 01/29/07, 10:02 AM
Netanyahu Continues "Divest Iran" Campaign
by Hillel Fendel
(IsraelNN.com) Netanyahu spoke by phone with Gov. Arnold Schwarzenegger of California, whose state’s Public Employees Retirement System manages the world's largest pension plan, worth $225 billion. Israel's former Prime Minister is asking that the fund, and others in the U.S. and elsewhere, withdraw their investments from companies dealing with Iran.
Ophir Akunis, Netanyahu's press spokesman, told Arutz-7 that Schwarzenegger said he would look into the matter of divestment from Iran.
Netanyahu met last week with Massachusetts Treasurer Timothy Cahill and with representatives from several other New England states, including Rhode Island and New Hampshire. Pension and investment funds in these states are invested in companies involved in Iranian projects to the tune of over one billion dollars.
Cahill accepted Netanyahu's evaluation that Iran is a great threat to the United States and the entire world, Netanyahu reported, and said he would "seriously check" the promotion of state legislation to force pension funds to withdraw their investments from companies active in Iran.
Iran is very vulnerable economically, Netanyahu has frequently explained, and this can be used to neutralize the voices calling for Israel's destruction: "Unemployment in Iran is more than 10% and poverty is over 40%. Without oil, Iran's economy returns to one based on textiles and agriculture - and collapses. The oil industry in Iran is outdated and requires tremendous infrastructure investments - currently provided by international companies. The withdrawal of these investments will create pressure on the companies to stop their involvement in Iran, leading to a collapse of the Iranian economy and real pressure for a change of regime."
Netanyahu served as Prime Minister from 1996 to 1999. Under Prime Minister Ariel Sharon, he was Foreign Minister for three months until February 2003, at which time he served as Finance Minister until he resigned just before the Disengagement in August 2005. The Likud party which he heads is currently running way ahead of both Labor and Kadima in the polls, making Netanyahu the favorite to be Israel's next Prime Minister.
During last week's Herzliya Conference, Republican presidential contender Mitt Romney of Massachusetts, former House Speaker Newt Gingrich and Senator John McCain all expressed support of pension fund divestment from Iran. They and others note that sanctions against Libya essentially ended its support for terrorism, and that divestment from South Africa toppled the apartheid regime.
Netanyahu also met with Canadian and British lawmakers on this topic during his trip that is to end this evening (Monday). He is similarly canvassing support for his initiative to have Iranian President Ahmadinejad tried in The Hague for inciting genocide.

Israel's former prime minister Netanyahu visits US to continue campaign for states to divest their pension funds from Iran

Netanyahu to meet Cheney, Clinton
Gil Hoffman, THE JERUSALEM POST
Jun. 20, 2007
Likud Chairman Binyamin Netanyahu flew to the United States on Tuesday night to meet with Vice President Dick Cheney, Democratic presidential candidate Sen. Hillary Clinton and New York state officials.
Netanyahu, who met with Clinton rival Sen. Barack Obama on his last visit to the US, will focus on the Iranian issue in the discussions.
The Likud leader began a campaign several months ago to persuade the governors and legislators of American states to divest their pension funds from Iran.
Florida and Ohio have already passed such measures and California is expected to do so this summer.
Click here to view article

A letter you can send to legislators

[Salutation]
As a former Ohio schoolteacher, I would like to add my voice to those requesting that you stop HB 151, HB 152 and SB 161.
All of these bills unfairly target educators and the strength and viability of our pension system, STRS. We have a hard enough time living on modest pension and struggling to cover the cost of healthcare without the legislature's making it tougher for us. We accepted meager salaries all during our careers, believing we would have a decent retirement; now they threaten to take it all away from us in one way or another, as outlined in these bills. it is no coincidence these three bills are emerging at the same time.
The Ohio General Assembly is overstepping its authority under the U.S. Constitution and existing federal commerce and trade laws. This issue belongs in the hands of Congress and not the Ohio General Assembly, or any other state legislature. The duties and responsibilities for overseeing US Foreign Policy, and international banking and trade laws, rests with the Congress and President and not with individual states. If Congress enacts legislation that applies equally to all 50 states and US territories, restricting commerce and banking with 'commonly' identified terrorist states, then I find that acceptable. The end result of this ill-conceived legislation will be to cause further financial damage to an already floundering Ohio economy and its struggling retirees. Any legislation such as this should come from Congress and not a handful of state legislatures.
These bills unfairly target Ohio's five pension fund members without requiring equal sacrifice from all Ohio citizens. In addition, these bills seem to be written together and will have major impact on Ohio's public workers and retirees -- educators, firefighters, police, highway patrol and school workers! It is incomprehensible that Ohio's legislators would write and try to pass such legislation without actuarial research as to the impact on Ohio's pension funds. And to reduce fiduciary responsibility for fund trustees is a direct recognition that the Ohio pension funds may face major losses. In addition it is a "kick-in-the-teeth" to all of Ohio's dedicated workers. The lack of protection of the workers' hard-earned pensions will make it very difficult for Ohio to obtain future workers as they will be unable to trust Ohio legislators.
After major investment losses, from 2000 - 2003, the pension funds are just beginning to emerge from increased unfunded liability, which has not been within state or federal requirements, and now to have legislators propose this unconscionable limitation on the funds for purposes that truly fall under federal jurisdiction, not Ohio's legal responsibility, is reprehensible.
As stated the actions contained in HB 151 and SB 161 far surpass Ohio legislative responsibility. Recently, Illinois went to court regarding similar legislative initiatives and won its case, as the actions were not deemed legal.
HB 152 should be dropped as STRS already offers Defined Contribution and Combined Options for its members (15% are in these options) as well as the Defined Benefit Option (85%). HB 152 is redundant and unnecessary.
I urge you to stop all three bills before they cause irreparable harm and economic disaster to Ohio's public workers! Please contact me about your actions on these three bills.
Respectfully,
[Name, address, phone no.]

Find your legislators
127th Ohio General Assembly
Gov. Strickland: Send to bill.hartnett@governor.ohio.gov

Friday, June 22, 2007

RH Jones: Bloomberg for U.S. President? Think again!

From RH Jones, June 22, 2007
Subject: Bloomberg for U.S. President? Think again!

To all:
Dr. K. Fluke informs me that now that N.Y.C. Mayor Michael Bloomberg has changed his affiliation from GOP to independent. Fluke watched the GOP leaning Fox News Network yesterday when the commentator said: "The now independent Bloomberg is not too bad. He took on the teachers in N.Y.C. and took away their tenure."
If this is true, and I think it may be, Bloomberg should not be considered for U.S. President by Public educators. We need to aware of the rich folks who want to get richer on the backs of us active/retired public educators.
RHJones, a proud member of CORE

Thursday, June 21, 2007

Push to divest pension funds could hurt

Recordpub.com

Retirees: Push to divest pension funds could hurt

June 7, 2007 By Mike Sever

Record-Courier staff writer

Local state government retirees are worried the war on terror is about to hit them in the pocketbook.

Some retirees are concerned about a push to have the state's five public pension funds divest of investments in companies doing business in Iran and Sudan, two countries that support terrorists.

The Ohio House has postponed voting on H.B 151, which requires the state's five public pensions funds to divest themselves of stock holdings in 26 companies that do business those countries.

House leaders are working on a compromise that would require the pension funds to adopt voluntary investment guidelines in line with the "Buy Ohio" plan rather than have mandated divestiture.

But that still could cause problems, retirees worry.

"I think the idea of not investing in Iran and Sudan is a noble idea, but to divest of all these companies would probably lead to severe depletion of the pension funds," said Jack Murphy, a district representative and a member of the Portage County chapter of Ohio Public Employee Retirees Inc.

The list of companies on the divestiture list includes Conoco Philips, Ford Motor Co., General Electric, Honda Motor Co., Boeing, Coca-Cola, and Toyota Motor Corp.,

"That's just some of the top ones," Murphy said.

The scope of the divestiture is also in question. Different groups have come up with different numbers of companies that could be affected.

"Who's left? And which country is next?" Murphy asked. He said companies that pay good rates of return could be shut out of pension investments, resulting in lower benefits for retirees.

Dorothy Stoessner, president of the local chapter, said a quick sale could depress the value of the pension fund and affect their retirement benefits. "It absolutely could affect pensions. We survive on those investments," she said.

Stoessner said the issue would be on the agenda at the group's next meeting, June 14. The chapter has nearly 300 members, but Stoessner said there are another 700 government retirees who could be affected by the divestiture.

The group meets at the Ravenna Moose Lodge, 3090 S.R. 59, starting at 11:30 a.m. Lunch is $7 and reservations must be made today by calling Becky Metzger between 11 a.m. and 4 p.m. at (330) 296-5787.

Murphy said he is advising local retirees to call their local state senator and representative to tell them to slow down and consider the ramifications.

"Call the governor and tell him to veto if it gets that far. It don't hurt to start calling him now," Murphy said.

Wednesday, June 20, 2007

A message from Dave Speas

Dave Speas to Molly Janczyk, June 20, 2007
Subject: NOW WHAT ARE THEY UP TO
NOW WHAT ARE THEY UP TO?
On a sunny and bright day two accidents happened. At 11:37 AM on Godspeed Road, a state legislator was killed as he took his daily walk and left six worthless bills behind. At 11:52 AM on Lookout Road a black and white skunk was hit by a car and left only one scent behind. The scuttlebutt at the sheriff's office was that it was easy to remember which place each accident took place. On Lookout road, there were skid marks but there were none on Godspeed Road.
To some, this may not be especially funny but it makes me smile as I write and talk to legislators about the topics I am covering here in this epistle. Many of them are truly out of touch with the citizens of Ohio and blind to the truth that if it "ain't broke don't fix it".
I need to warn you that if I had been born during the time the Revolutionary War was fought and the time afterwards where our national government was formed, I would have sided with Patrick Henry in his opinion about the newly written Constitution that it is too big, too impersonal, and it has too much power to intrude into individuals' lives. Personally, I am of the opinion that the less government the better because each of us have to be more involved in the daily decisions made by our communities because government is not involved. An example of this is that as the government became more involved in providing food and other tangible help our churches and other private organizations withdrew much of their effort from the acts of helping these folks on a local level. With all the problems we face today, private entities are trying to learn again how to be affective because the government cannot know the needs of each individual community.
I am going to discuss HB 151, HB 152 and the Getting It Right for Ohio amendment movement that will redesign Ohio's school funding.
House Bill 151 was written to keep the retirement systems from investing in companies doing business in Iran and Sudan. It is being fostered on us as an antiterrorism bill.
Republican Jon Husted, Speaker of the House, is the prime supporter of this bill. He has taken the position that if the retirement systems in Ohio do not voluntarily adopt taking roughly 19 companies out of their investment portfolios, the bill will go to the floor.
Let me give you a list of why this is a bad idea as follows:
1. One of the premises of open markets is that if western companies can get into countries like the Sudan and Iran they can be an influence on their economy making them embrace the free market tenants and get freedom's basic ideas next to the common people and the governments.
2. Many of the companies on the original list put forward by the legislators have businesses in Ohio, hire tens of thousands of our citizens, bring salaries and tax monies into our communities, and are not supporters of terrorism and have track records that prove so. For instance, Rolls Royce is on that list and Ohio is trying to attract them to locate in the Cleveland area. Are these mixed messages, I'd say so.
3. A legislator can sponsor a bill based on his or her own ideology and it can be changed into something quite different from what was intended with amendments.
4. The law on the books now that covers STRS, for instance, says that our retirement system has to make the best returns on investments it can for our members.
5. Every time a new party controls the legislature the pension systems would be held hostage to their party of personal ideology rather than to the spirit of the original law and to the members the systems were designed to serve.
6. Lastly, foreign policy is the job of the federal government and it should decide on the use of economic sanctions based on the country's needs to impact specific issues.
House Bill 152 was introduced by Republican Chris Widener from the Springfield area. This bill requires all K through 12 employers to offer private vendor defined benefit plans to all new employees and those with less than 5 years of service credit.
STRS and most retirees have many objections and they follow:
1. The potential to lose teachers to private vendor plans would have negative consequences on the systems funding status due to possible loss in contributions.
2. STRS already offers a defined contribution plan to its new members employed at both the K-12 level and in higher education that is competitive to private vendor plans in both its investment options and its fees. There is no demand from those affected or their employers for these additional options from private vendors.
3. I sit on a public school board of education and we are struggling as most are across this state to keep our books balanced. The addition of private vendor plans will result in an increased administrative burden and cost to school districts.
4. This bill was aimed at Ohio public school employees and not county workers, firemen, policemen, utility workers nor any other worker who receives a pay check from a county or city.
It is my personal opinion, along with others, that there are forces out there trying to destroy our retirement systems. 68 billion dollars is a magnet to those who might see it as a way out of Ohio's financial problems. There are national movements afoot trying to make all of us be part of the social security system and sometimes, I believe, legislators wittingly or unwittingly become part of the effort to destroy the systems.
Getting It Right for Ohio's Future is a grass root movement to change Ohio's funding for public schools. It is a proposed ballot issue that needs over 400,000 names on its petition to get it to the voters.
The proposed amendment would declare a high-quality public education a fundamental right of all Ohio children and gradually reduce local shares of expenses for schools and increase the state's share.
The facts you need to know follow:
1. The state's share would jump by 50% over the next nine years. That is an increase of 3.2 billion dollars.
2. The Ohio School Board of Education would identify the components and put a price tag on such an education and the General assembly would have to fund it. A new funding system would be phased in over three years. This would shift much of the burden for funding from local property owners to the state.
3. According to the Education Department's analysis, per pupil aid would increase from $5,403 this year to $7,883 in 2016, a 46% increase over nine years. (Over the past 8 years the rate went from $3663 in 1998 to $5.403 in 2007 which is a 48% jump.)
Specifically, you should know these things:
1. It would reduce the required local school district funding contribution to 20 mills of property or equivalent taxation in a 6 year phase between 2012 and 2017.
2. It would eliminate phantom revenue by exempting the 20 local mills from rate reduction factors which will greatly reduce the size, number, and frequency of operating levies.
3. It would retain all existing mileage or other equivalent forms of taxation until planned expiration or elimination by school district voters.
4. It would mandate a 5% plus inflationary increase in per-pupil funding during the two initial fiscal years prior to the full launch of the constitutionally revised system.
5. It would exempt Ohio senior citizen homeowners and disabled homeowners from property taxes on the first $40,000 of market value of their homes.
6. It would protect school state funding for facilities, local government, and higher education.
It has been 10 years since the original Ohio Supreme Court said our state funding of schools is unconstitutional. With very little response from the legislature, this is the result.
Retired teachers have been the guardians of the retirement system since its beginning. As retirees were keeping our retirements safe, we now have a duty to protect our actives' benefits. While doing so, we will also become knowledgeable about those things which may impact us. We were not doing a good job of that when the last crisis hit and we paid for our lack of diligence.
Our retirement organizations must work together to defeat bills and legislation that would hurt us or the actives. The measurement of viable retirement organizations is whether they can put small differences behind them and rally to the cause together. The combining of those who are members and those who have not joined any organization is necessary to stop these poorly thought out bills.
We retirees must get into the district meetings at the beginning of the year and make the actives aware of the work we are doing and the dangers that are lurking to take away the retirement system's ability to function for our benefit and not be prey to some lawmaker's ideology.
Teachers have been at the forefront of educating people through all the generations. Even today as retirees, we must set the example that apathy is not acceptable when government oversteps its bounds and is not responsive to what is best for its citizens.
Come on, call teachers you know who are not members and enlist their help, rally your friends and neighbors, be vocal about these bad decisions or good solutions in your churches and social organizations, get your family involved, and certainly, above all, contact your legislators along with all those you recruit.
Remember that bad laws can cause more problems than no law at all. Vigilance is the only way to keep bad government from happening to all of us.
Dave Speas, CCRTA president [Clark Co.]

Kathie Bracy to Representative Kevin Bacon and Senator David Goodman re: HB 151, HB 152 and SB 161

From Kathie Bracy, June 20, 2007
Subject: HB 151, HB 152 and SB 161
[Same message sent to Sen. David Goodman]

Dear Representative Bacon,
I am very upset about HB 151, HB 152 and SB 161. If any of these bills become law, they will do untold damage to my pension system, STRS, and subsequently the beneficiaries. Retired teachers are NOT wealthy people to begin with. I fail to understand why WE are being targeted, except that SOMEBODY WANTS OUR MONEY! Please do all you can to stop any of these bills from becoming law. I worked hard for many years to enjoy my retirement, and do not relish the idea of ending up on the welfare rolls instead. If we are forced to divest, then EVERYONE IN THE STATE OF OHIO SHOULD ALSO BE FORCED TO DIVEST. Fair is fair!!!
Thank you.
Kathie Bracy
(Address, etc.)
Columbus, OH

Speaker Husted responds to Paul Boyer's letter of June 7, 2007

From Jon Husted, June 18, 2007
Subject: HB 151, 152
Dear Reverend Boyer:
I received your email regarding House Bill 151 and House Bill 152. I appreciate your concern for these measures.
House Bill 151 was introduced on April 12. This measure seeks to specify procedures for divesting investments a public investor holds in directly held, publicly traded companies conducting specified types of business in the Islamic Republic of Iran and the Republic of the Sudan, prohibit public investors from investing in such a company and authorize the Ohio public deferred compensation board, the alternative retirement program and the Ohio college savings program to offer a terror-free investment option.
As you may be aware, House Bill 151 was scheduled for a vote on the House floor on June 5. However, after meeting with the pension plans, my colleagues and I agreed to give the plans time to deliver a letter in which they state their intent to divest at least 50 percent of their investment portfolio with the intention of divesting 100 percent at a later, unspecified date. On Thursday, June 7, Ohio’s five public employee pension systems agreed to adopt policies aimed at dropping shares of companies that do business in Iran and Sudan. The systems said that they would divest themselves of half of these investments by the end of the year and ultimately divest the rest. In this case, I am thankful the pension funds have agreed to voluntarily comply.
Throughout this process, it has been my hope that we will take investments out of countries that sponsor terrorism, such as these, whether it be by a change in statute or voluntary action taken by the plans themselves.
Furthermore, House Bill 152, sponsored by Representative Widener, would require school boards to establish alternative retirement plans for teachers and school employees. It was introduced on April 17 and referred to the House Financial Institutions, Real Estate and Securities Committee.
Please know that I understand your concerns related to these pieces of legislation. As discussion on both House Bill 151 and House Bill 152 continue, I will certainly be mindful of your views as we work to decide upon the best outcome for our state and Ohio’s retirees.
Again, thank you for your email. If I can be of further assistance, please contact my office.
Sincerely,
Jon A. Husted
Speaker
Ohio House of Representatives

Labels: ,

Jon Husted and Nancy Hamant re: HB 151, HB 152 and SB 161

From Nancy Hamant, June 20, 2007
Subject: HB 151, HB 152 and SB 161
Rep. Husted:
Thank you for responding to my email regarding HB 151, HB 152 and SB 161. However, the legislative actions that you have outlined, I totally disapprove of being passed. In fact, I will reiterate--I am asking you to stop these three bills and not approve them at all. If they do pass, I am requesting that Governor Strickland veto all three--HB 151, HB 152 and SB 161 as they unfairly require sacrifice by one population of Ohio citizens. If these issues are so important to you--require ALL OHIO Citizens to sacrifice in the same manner!
Respectfully,
Nancy B. Hamant
Subj: RE: HB 151, HB 152 and SB 161
Date: 6/20/2007
June 20, 2007
Nancy B. Hamant
Dear Ms. Hamant:
I received your e-mail regarding your concerns with House Bill 151, House Bill 152 and Senate Bill 161. I appreciate you sharing your views on these issues and for your work on behalf of retired teachers and educators in our state.
As you are likely aware, House Bill 152 was introduced by Representative Widener on April 17, and referred to the House Financial Institutions, Real Estate and Securities Committee. This measure would require school boards to establish alternative retirement plans for teachers and school employers.
Additionally, House Bill 151 was scheduled for a vote on the House floor on June 5. However, after meeting with the pension plans, my colleagues and I agreed to give the plans time to deliver a letter in which they state their intent to divest at least 50 percent of their investment portfolio with the intention of divesting 100 percent at a later, unspecified date. On Thursday, June 7, Ohio's five public employee pension systems agreed to adopt policies aimed at dropping shares of companies that do business in Iran and Sudan. The systems said that they would divest themselves of half of these investments by the end of the year and ultimately divest the rest. In this case, I am thankful the pension funds have agreed to voluntarily comply.
Senate Bill 161, sponsored by Senator Jeff Jacobson was introduced on May 3 and referred to the Senate Finance and Financial Institutions Committee. Senate Bill 161 would specify procedures for divesting investments a public authority holds in a company conducting specified types of business in Sudan and to prohibit public authorities from investing in such a company.
Again, thank you for contacting me and sharing your views on these pieces of legislation. Be sure that as we continue to discuss these measures in the Ohio House, I will be mindful of your views. If I can be of further assistance, please contact my office.
Sincerely,
Jon A. Husted
Speaker
Ohio House of Representatives

Letters from Duane: We ALL need to write letters to our legislators to fight HB 151, HB 152 and SB 161

From Duane Tron, June 20, 2007
Subject: HB 151, HB 152 & HB 161

Dear All,
I am asking for you to step up and fight against passage of HB 151, 152 & [SB]161. Please write letters and send e-mails to lawmakers and the governor. You know this legislation is shaky when a person (me) who has been a registered Republican for the past 42 years comes out against it. This legislation might be well intentioned but I personally believe it is an attempt to destroy "public" pension funds in Ohio. The impact it will have on fighting the "War on Terror," is minimal. A piecemeal attempt by a handful of state legislatures to leverage this issue is next to impossible. As I indicated in my following letter, matters that involve international banking, commerce, and trade rest squarely with Congress, and the President, and not the individual 50 state legislatures. I have read this legislation and it is a can of worms. Folks, we don't even want to go there! We'll be battling for the next 50 years in dealing with the provisions of these three Bills. They are a mess that will do nothing to fight terrorism but will open a Pandora's box for generations to come.

Duane
---

June 20, 2007 10:44 AM
Subject: Fw: HB 151, HB 152 & HB 161
Dear Mr. Marshall,

Just a little information to provide some insight into how ridiculous and inane the divestiture legislation is and how little it will impact the larger picture in the the global war on terror. The Ohio General Assembly is overstepping its authority under the Constitution and existing federal commerce and trade laws. This issue belongs in the hands of Congress and not the Ohio General Assembly, or any other state legislature.

Sincerely,
Duane E. Tron
St. Paris, OH
---

June 20, 2007
Subject: Re: HB 151, HB 152 & HB 161
To The Honorable Governor Ted Strickland

Dear Governor Strickland,
As a retired Ohio educator, Navy veteran, 20 year retired volunteer firefighter, and member of law enforcement I respectfully request that you veto HB 151, 152, & [SB]161 when they come before you. Although the three pieces of legislation may be well intentioned they are ill conceived and fail to accomplish little apart from damaging investments of Ohio public retirees. I wholeheartedly support the "War on Terror" but a piecemeal effort by several state legislatures, to punish Iran and Sudan, in this manner, violates existing federal banking and commerce laws. As a former government teacher it is my understanding that such action should come from the Congress and not individual state legislatures. The duties and responsibilities for overseeing US Foreign Policy, and international banking and trade laws, rests with the Congress and President and not individual states. Please have your legal counsel research this as I don't want to spend a lot of time explaining the different parts of the Constitution and federal commerce and banking laws at this time.

If Congress enacts legislation that applies equally to all 50 states and US territories, restricting commerce and banking with 'commonly' identified terrorist states, then I find that acceptable. What the Republican controlled Ohio House and Senate are attempting to do is a veiled effort to destroy our five public pension funds and force privatization.

I leave you with one question. If it is so imperative for state pension funds to divest themselves of doing business with companies doing business with Iran and Sudan then why aren't they imposing the same rules to the private sector? If the intent of the legislation is to stop doing business with companies doing business with terrorist states does this mean we will have to divest from companies doing business with China, Russia, Saudi Arabia, Dubai, UAE, Syria, Malaysia, Pakistan, Indonesia, Kuwait, Yemen, Turkey, France, Germany, plus many more? Why these countries? Because they all do business with Iran; business that includes providing nuclear technology, refining Iranian oil into gasoline, supplying weapons systems (i.e ships, combat aircraft, missiles, radar, etc), providing financial backing, providing computer technology and micro chips, and much more.

How are these bills going to impact the larger picture when we have no control over dozens of countries, who happen to be US trade partners, and who continue to provide assistance to regimes who sponsor terrorism. The end result of this ill conceived legislation will be to cause further financial damage to an already floundering Ohio economy and its struggling retirees. Any legislation such as this should come from Congress and not a handful of state legislatures.

Sincerely,
Duane E. Tron
St. Paris, OH

Federal Board: Retirement fund shouldn't be political tool

Retirement Fund Shouldn't Be Political Tool, Board Says
Federal Diary (washingtonpost.com)
By Stephen Barr
Wednesday, June 20, 2007
View article here

The federal board that oversees retirement savings by government employees said yesterday that it would oppose proposals in Congress to use the Thrift Savings Plan as an economic weapon against Sudan and Iran.

On a 4 to 0 vote, members of the Federal Retirement Thrift Investment Board approved a resolution objecting to any efforts that would "introduce political or social considerations into TSP investment policy."

The TSP, a program that functions like a 401(k) for the civil service, postal and military personnel, has practiced neutrality on political and social issues since its start 20 years ago. However, bills pending in Congress would pressure the TSP to stop investing in companies that do business with Iran or support, directly or indirectly, the conflict in the Darfur region of Sudan, which the United States has called a genocide.

While the legislation would "address various meritorious causes," the board objected to any effort to tamper with the TSP, which uses funds that mirror the ups and downs of stock and bond markets rather than a particular industry or individual companies.

Through the TSP, government workers may save for retirement by investing in stock index funds that cover U.S. and international markets, a bond index fund and a government securities fund. The funds operate with low overhead costs and are relatively easy to understand.

In 1986, Congress designed the TSP around the index funds as a way to stymie political manipulation and prevent board members from knowing about or controlling specific investments.

Since that time, the board has opposed proposals to divest based on tobacco sales, corporate governance and environmental practices. The board also has opposed establishing special funds to promote housing, small businesses and renewable energy.

Andrew M. Saul, the thrift board chairman, urged the board yesterday to send a signal to Congress that the Thrift Savings Plan cannot be drawn into social or political debates, even for good causes.

"Personally, I don't think this is in the participants' best interest," Saul said, noting that making exceptions to address the violence in Sudan and to weaken Iran's oil and gas industry would create "the wrong precedent."

Tracey A. Ray, chief investment officer for the savings plan, presented the board with a report from the Ennis Knupp & Associates consulting firm that showed the TSP would have encountered substantial costs if its international stock index fund, the I Fund, had been stripped of foreign companies that do business in Sudan.

Based on the I Fund's assets of $25 billion, the TSP would have paid about $30 million in one-time transition costs to create a fund without Sudan investments. It would have returned about $171.5 million less than the I Fund did during the 2001-2006 period, the consultant estimated.

The thrift board also took up a package of changes for submission to Congress.

If lawmakers approve, new government employees would be automatically enrolled in the TSP and, if they gave no investment directions, would be placed in an age-appropriate life-cycle fund. Three percent of their basic pay would be deducted for the savings plan, unless they took steps to change the amount of their contribution or opt out of the program.

Gregory T. Long, the board's executive director, said the proposal would increase participation in the TSP by a few percentage points and help the workers better prepare for retirement. Some employees do not sign up for the TSP because of inertia or uncertainty about whether they can afford to save for retirement, research shows.

To ensure they are not being forced into the program, the proposal would give new employees a chance to decline enrollment at their first orientation session on government benefits. The new employees also would be given a 90-day grace period to withdraw their money from the TSP if they wished to stop the automatic contributions.

Long recommended that the TSP not seek legislation to offer Roth accounts, which are treated differently for tax purposes than regular TSP accounts. Regular contributions are made on a pretax basis, with contributions and earnings taxed as ordinary income when withdrawn. Taxes are paid on contributions to Roth accounts, but withdrawals are not taxed.

Sixty percent of participants in a TSP survey last year said adding a Roth 401(k) option would make the TSP a better program, but Long said it would be complex and costly, involving millions of dollars to reprogram computer and accounting systems and handle telephone inquiries.

Roth accounts were approved by Congress in 2001, and Long told the board that it didn't have enough data. He recommended that the staff continue to study the issue and that the board take it up again in about two years.

A comment from Paul Boyer

June 20, 2007
Friends, read my comment added to something John Curry sent out. Find it at:http://columbuser.com/2007/06/08/public-pension-managers-give-in/#4 on the Internet.
My comment is #5.
Paul

Labels: ,

Tuesday, June 19, 2007

Ohio legislation re: divestment in Wall Street Journal

Will Honda Leave Ohio Over Divestment Bill Targeting Companies Doing Business With Iran?

Maybe talk like this caused the Ohio Retirement Study Council to quickly remove the original "nasty companies" (my terminology) list from its website in relation to divestment. I doubt if Honda would "remove" its plants BUT, I have a strong hunch that they won't open any new plants in Ohio after they appeared on the "nasty companies" list. If you want a copy of that rapidly disappearing list from the Ohio Retirement Study Council website which mentioned Honda's 17,000 plus jobs that Ohioans now enjoy... please email me and I'll see that you get that list which also included Rolls-Royce (who is - or now I probably should say "was" considering a new facility in northern Ohio. John Curry [curryjo@watchtv.net]

6/19/2007
http://www.opinionbug.com/?p=2038

Will Honda Leave Ohio Over Divestment Bill Targeting Companies Doing Business With Iran?

By Tim June 19, 2007

Will Honda Motor Corp. leave Ohio over a divestment bill sponsored by Rep. Josh Mandel that targets companies doing business with Iran? Apparently, some fear the Japanese automaker might do just that rather than pull out of Iran.

From Christopher Holton at the Center for Security Policy:

Center for Security Policy—Josh filed a bill in the current legislative session in Ohio to end that state’s investments in foreign companies doing business in and with Iran.

Then came the revelation that Honda has close business ties to Iran.

Honda has a large plant in Ohio. Whispers suddenly began to be heard that should that legislation be passed, Ohioans would lose their jobs.

In other words, Honda values its relationship with the Ayatollahs who are killing Americans more than it values its employees in Ohio. This after news earlier this year that Daimler-Chrysler, which had made a sizable investment in Iran just within the last five years, was pulling itself out of that country. …

And from the Enquirer:

Enquirer—Honda, which employs 16,000 people in Ohio, has not taken a position on the bill, said Jeffrey Smith, assistant vice president for corporate affairs at Honda America. Japan-based Honda Motor Co. has a minority stake in Tizro Manufacturing Co., which assembles motorcycles in Iran. …

Finally, from Neil King Jr. at the Wall Street Journal:

Wall Street Journal—Rallying their forces, the funds emailed “action alerts” to thousands of the state’s 1.3 million current and retired state employees, alleging that the bill could gut their retirement and health-care accounts and urging them to call their local representatives. “A delayed response may be devastating,” read one alert sent out in May by the Ohio State Teachers Retirement System.

An even louder outcry arose from Ohio’s industrial belt. The bill, which roped in companies with even small engagements with Iran, affected not only Honda, but DaimlerChrysler AG, Bridgestone Corp., Siemens and ThyssenKrupp AG, all of which have factories in Ohio. The pension funds estimated that the targeted companies employed more than 45,000 workers in the state.

One of the first critics to pull Mr. Mandel aside was Rep. Matt Szollosi, a freshman Democrat. His message: The bill would chill the investment climate in Ohio, a state already hard hit by the loss of manufacturing jobs. “I told him straight out that DaimlerChrysler has a new Jeep plant that straddles my district,” Mr. Szollosi recalls. “They’ve invested up to $2.5 billion in that plant… . The bill as introduced would have had a devastating impact on Ohio from an economic-development standpoint.”

Kathie Bracy to Governor Strickland: Please say NO to HB 151, HB 152 and SB 161

To the Honorable Governor Ted Strickland
June 19, 2007
Dear Governor Strickland,
As a former Ohio schoolteacher and a 37.7 year member of STRS (before retirement), I would like to add my voice to those requesting that you veto HB 151, HB 152 and SB 161 if they are passed in the legislature.

All of these bills unfairly target educators and the strength and viability of our pension system, STRS. We have a hard enough time living on modest pensions and struggling to cover the cost of healthcare without the legislature's making it tougher for us. We accepted meager salaries all during our careers, believing we would have a decent retirement; now they threaten to take it all away from us in one way or another, as outlined in these bills. It is no coincidence these three bills are emerging at the same time. Somebody wants our money!!!

I know you are pro-public schools and anti-charter schools. I will do all I can to support you in your endeavors to strengthen the public schools and get rid of the charter schools. We do not need both; charter schools are a travesty and must go.

Thank you.

Kathie Bracy
(Address, etc.)
A life-long Republican who voted for you and a lot of other Democrats in the last election

Mary Ellen Angeletti to Governor Strickland: Please veto all three bills

From Mary Ellen Angeletti, June 19, 2007
To: susie.long@governor.ohio.gov
Subject: H.B. 151, H.B. 152 & S.B. 161

June 20, 2007
TO: The Honorable Governor Strickland
FROM: Mary Ellen Angeletti, CORE (Concerned Ohio Retired Educator) Vice President
Please do what you can to stop any progress on the three bills mentioned above. These bills will harm the Teachers' Pension Fund (STRS). We need all of the help we can to maintain our savings invested in our STRS pensions, and we certainly do not need the meddling of these legislators who are promoting these bills. There is NO REASON to consider H.B. 152 as STRS already offers a defined contribution for members. H.B. 151 unfairly targets the five Ohio pension funds and restricts investment choices which may threaten the solvency of the fund. It also releases any fiduciary responsibility from STRS investment managers which is just a disaster waiting to happen. These legislators are playing with U.S. foreign policy issues at the expense of OUR savings invested in our teachers' pension fund. IT IS OUR MONEY, NOT THEIRS. Let them restrict their own investments, not ours. Please do what you can to stop this injustice. Ohio will never attract and keep workers here if this is how our General Assembly treats our workers' pension funds. Please veto these three bills!!!!!!!!!!

Respectfully,
Mary Ellen Angeletti,
STRS retiree
(Address, etc.)

The low-down on charter schools from a superintendent in Xenia

What to know about Ohio's charter schools

Jeffrey K. Lewis Superintendent, Xenia Community Schools
Xenia Daily Gazette
Thursday, May 10, 2007

Since the beginning of the charter school movement in Ohio -- in our state they're called community schools -- there have been incredible stories of financial mismanagement, academic mediocrity and ruthless profiteering.

There is also a misperception about what the charter schools. Some of our folks believe they are private schools and therefore exclusive or better. They are actually public schools that have received charters to operate from the Ohio Department of Education.

The sad state of the charter school movement in our state began because charter schools were granted before reasonable accountability systems were put into place. At the same time, many of the "regulations" placed upon traditional school districts have not been expected of the charters. These include teacher licenses and the student testing programs.

Imagine if a typical school district ran its school for the objective of making money. There would be incredible outrage. As much as I dislike the prospect of pounding levy signs in the ground to promote a Xenia levy, I disdain the fact that charter schools bleed some of those funds. Those schools do not have to convince any local group of their need.Ê As parasites, they will take the funding regardless of the levy results.

These schools also have failed in many cases to be good financial stewards. Just recently, the State of Ohio filed a $1.4 million recovery fee against a defunct charter school in Cleveland. That school shut down last fall. In addition, last fall three charter school operators were indicted for defrauding the state out of $2.9 million. The schools, however, are funded very well. In addition to state and local tax dollars, charter schools also receive extensive federal funding. Two years ago, they received more than $44 million in federal funds. The financial impact on districts, primarily urban, is staggering. In 2004-05, Dayton City Schools realized $42 million in reductions for charters, while the Cincinnati's school district amount was $43 million.

There are two basic types of charter schools: brick and mortar schools and electronic or e-schools. Initially created to provide attractive alternatives to traditional programs, some have met the educational objectives and have succeeded in giving parents/students viable alternatives. Most have not. Consider, data from Local Report Cards show that traditional public schools outperform charter schools in each of the 21 proficiency and achievement tests. On the 2005-06 Ohio Report Cards, 30 community schools rated excellent; 16, effective; 87, continuous improvement; 46, academic watch and 81, academic emergency. Because of incomplete data, 35 schools were not even rated.

The electronic schools have become a source of concern and controversy. Estimated that the annual cost to educate a student in these schools is $2,000, the schools earn $5,300 from the State. That's a $3,300 profit. As a result, there are some e-school "leaders" making millions of dollars from this business venture. One of the biggest programs in Ohio, White Hat Management, brought in about $1 million in 2005-06 through its schools. The State Auditor has not completed an audit on this organization, but critics believe the charter schools profit was about $20 million in 2005-06. There is even an e-school based in Canada!

I applaud Governor Strickland's plan to place a moratorium on charter schools in Ohio. Until accountability measures are in place and funding and operational connections alive and well, the mediocrity, corruption and profiting will continue.

Please consider contacting your local legislator to share your opinions and concerns regarding charter schools. It's the least we can do for our communities and our students.

Jim McGreevy: Fighting terrorism and genocide a job for the feds, not individual states targeting small pockets of citizens

Columbus Dispatch, June 19, 2007
Section: Editorial/Letters

Don’t limit funds’ ability to make money

I understand a newspaper’s need to characterize complex issues in easy-to-understand language, but I must object to the choice of words in the June 8 Dispatch article "Lawmaker’s arm-twisting gets Ohio pensions to divest," on the pension-fund-divestment issue.
Calling the issue "an affront to their (pension funds’) ability to make money for government employees" is a terribly misleading statement. The issue is whether pension-fund employees and board members should be held to their sworn duty to act as prudent fiduciaries in the management of members’ money. That is not a matter to be taken lightly. The term fiduciary carries volumes of case law and statutory mandates. It has nothing to do with being taken aback by the divestment issue.
Further, the article’s use of government employees to describe the members of state pension funds, while partially accurate for those still working, implied that this is a matter of greed on the part of overpaid government employees gorging themselves at the public trough. In fact, the money in the pension funds either has been contributed directly by retirees over a lifetime of service to the citizens of this state, or was paid to the fund by their employing state agencies and school districts as part of their compensation package while working. The balance of the money needed to pay a retiree’s pension benefits comes from the income generated by investments.
Decisions on these investments must not be hamstrung by ill-conceived, poorly-worded legislation drafted by politicians seeking to wrap themselves in the flag for grandstanding purposes.
Fighting terrorism and genocide are noble goals, but these should be pursued by a coherent national strategy, not by individual states targeting small pockets of citizens to bear the burden of the effort.
JAMES McGREEVY
Zanesville

Nancy Hamant to Governor Strickland and Legislators: STOP HB 151, HB 152 and SB 161

From Nancy Hamant, June 19, 2007
Subject: HB 151, HB 152 and SB 161
June 19, 2007
To:
The Honorable Michelle Schneider
The Honorable Robert Schuler
The Honorable Jon Husted
The Honorable Lynn Wachtmann
The Honorable Governor Strickland
From: Nancy B. Hamant, Warren County Retired Teachers Association (WCRTA) and Concerned Ohio Retired Educators (CORE)
Subject: HB 151, HB 152 and SB 161
I am writing to you today to request that you stop/halt HB 151, HB 152 and SB 161.
These bills unfairly target Ohio’s five pension fund members without requiring equal sacrifice from all Ohio citizens. In addition, these bills seem to be written together and will have major impact on Ohio’s public workers and retirees—educators, firefighters, police, highway patrol and school workers! It is incomprehensible that Ohio’s legislators would write and try to pass such legislation without actuarial research as to the impact on Ohio’s pension funds. And to reduce fiduciary responsibility for fund trustees is a direct recognition that the Ohio pension funds may face major losses. In addition it is a “kick-in-the-teeth” to all of Ohio’s dedicated workers. The lack of protection of the workers’ hard-earned pensions will make it very difficult for Ohio to obtain future workers as they will be unable to trust Ohio legislators.
After major investment losses, from 2000—2003, the pension funds are just beginning to emerge from unfunded liability, which has not been within state or federal requirements, and now to have legislators propose this unconscionable limitation on the funds for purposes that truly fall under federal jurisdiction, not Ohio’s legal responsibility, is reprehensible. In fact, the federal government is not requiring such action from United States’ citizens. An article in today’s Enquirer pointed out that the US is halting all economic and political sanctions on the Palestinians so that peaceful negotiations may take place.
As stated the actions contained in HB 151 and SB 161 far surpass Ohio legislative responsibility. Recently, Illinois went to court regarding similar legislative initiatives and won its case, as the actions were not deemed legal.
HB 152 should be dropped as STRS already offers Defined Contribution and Combined Options for its members (15% are in these options) as well as the Defined Benefit Option (85%). HB 152 is redundant and unnecessary.
I urge you to stop all three bills before they cause irreparable harm and economic disaster to Ohio’s public workers! If all fails, Governor please veto all! Please contact me about your actions on these three bills.
Respectfully,
Nancy B. Hamant
(Address, etc.)
XC: WCRTA, CORE
Larry KehresMount Union Collge
Division III
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