John Bos: A letter to Mike Nehf

To: Mr. Mike Nehf, State Teachers Retirement System of Ohio
From: John Bos, November 17, 2008
Subject: Communication to Mr. Nehf regarding the current state of STRS! These are not normal times.

Dear Mr. Nehf,

I wish to sincerely thank you for the meeting with CORE on Thursday. Although I thought the meeting got off to a shaky start, I was very pleased that I made the 200 mile drive and to hear your views regarding STRS. You need to understand that participants were first shocked when former Executive Director Herb Dyer said that the money is “OURS AND WE WILL DECIDE HOW TO SPEND IT”. That comment cost a man his career.

We agree on many issues and disagree on several. I wish to make a few comments for your review.

1. If I offended you at any time during the meeting, I sincerely apologize!

2. I met with several educational administrative retired friends on Wednesday for our annual fall lunch. The number one topic of conversation was STRS. You have not even come close to communicating with the retirees. Unfortunately, some of the communications that have been distributed by the communications director have increased the frustration levels. Everything is not OK in the minds of the members. I suggest that you read carefully any releases that are prepared by the communications office. Dennis Leone and I are 100% in agreement on this issue. This issue has caused your personal image to be negative.

3. Report to retirees that the day care is now cost neutral. If that is not true, (we have been promised this for about 5 years) make changes immediately to make it cost neutral. Remember, we even paid for adoptions previously.

4. Establish tuition reimbursement with requirements that they must stay at STRS for X number of years or reimburse STRS for the tuition money.

5. Enroll STRS Associates in the same medical plan that is used by the retirees. The poster that was in the lunch room yesterday advertising “Open Enrollment” in United Health Care irritated me. I was told once that Medical Mutual did not want a small group. Mr. Nehf, our cemetery board has one employee. They use Medical Mutual for the medical benefit. Cleveland Indians have approximately 125 employees and use Medical Mutual

6. The associates of STRS have been very competent and helpful, but there remains an attitude of “Greed” and “Entitlement”. This has been perpetuated by previous administrators. The retirees feel that the faces change, but the attitude still exists. This needs to start at the top and EVERY employee needs to accept this fact. Cash for sick leave, personal leave, 4 day work week, 37.5 hour work week, are just a few examples that have led to the retirees' frustrations. The new building is history, but the furniture that was purchased and given away also reflects this attitude. There are several moles at STRS that have communicated this information to retirees very accurately regarding the attitudes of other associates.

7. The discussion of the investment staff about their new “special automobiles” in the cafeteria has added to your internal and external issues. School administrators learn very quickly that they had better live in a home and drive a car that reflects their local community values. On more than one occasion, these discussions were held in the cafeteria in front of other associates that were on the bottom of the salary schedule.

8. I totally agree that the “bonus plan” is a part of the investment staff compensation, BUT, you can not offer these compensations when the market has gone into the basement. As a result of the market changes, I have lost significant assets and can not accept the size of their payments. Today, Citicorp severed 10,000 staff members. Fidelity announced massive cuts. There are no jobs on Wall Street. The “Big Three” have been told that if there is “cash assistance” there will be no bonus payments.

9. Most investment staff members at other locations are compensated with “stock options” while STRS Associates are paid cash. As Yogi said, “that is almost as good as money”. I have friends that work for banks who can line their walls with the useless stock options. STRS Associates can use theirs as they wish. Please check FITB, HBAN, FDEF, JPM for their yearly performance. These are all Ohio companies.

10. I would hope that the investment associates would take time to carefully consider the entire picture of STRS, investment growth, compensation, retiree relationships, fellow employee relationships, and perhaps realize that the STRS Board decisions made last March were not in the best interest of STRS staff, retirees, or the general public (including the legislature).

Thank you again for scheduling the meeting on Thursday. I know retirees that can not speak for themselves, can not drive to Columbus, and can not challenge STRS for their years of multiple errors. I feel obligated to speak on their behalf. As I told Tim Myers, I am not going to disappear.

Sincerely,
John Bos
3 generations of active STRS participants from 1932 to current year