Don Gatchell to STRS Board: Please be good stewards of our hard earned money

From Don Gatchell, November 13, 2008
Subject: Local RTA Members Fear Future of Pension Fund

STRS Ohio Board:

The key request most of the local STRS retirees have of the Executive Director, his staff & the Board members is "... please be good stewards of the money we earned and insure that it will grow over time so we can feel secure during all of our retirement years." Those of us who retired 10 or more years ago were told, no PROMISED by STRS officials in face-to-face meetings that during our retirement we would not have to worry because we would receive health insurance at 'little' cost to us, a 'secure' pension amount paid monthly that would 'rise' as inflation rose and a 13th check each year to help us with special expenses we incurred. Well, so much for promises! Right now I am not even sure that our pension fund is secure because of not only the failing economy and falling stock market, but also the risky STRS investments in financial & other stocks that investing resources like Morningstar were calling volatile a year ago. Maybe besides bonus checks to investment staff for superior performance, there should be a deduction from their pay for risky, non-productive investments.

The next step in the investments program is to compare STRS investment performance to not only the major stock indexes such as the DJIA, S&P 500, NASDAQ, etc., but also to the performance of other Ohio & out-of-state retirement funds. It might be wise also to check what big investment companies like Janney, Montgomery, Scott or Fidelity or Vanguard could do to assist or replace the STRS investment staff.. I do not wish to be ungrateful or rude to the dedicated STRS staff members, but many of us are very afraid for the future of our pension fund. Unfortunately, desperate times may require desperate actions by the Board.

Thanks for all you and your fellow Board members do to support STRS retirees.

Be well,

Don Gatchell
President, Ross County Retired Teachers Assn.