Molly Janczyk re: Bonuses and 13th check

From Molly Janczyk, November 13, 2008
Subject: RE: Bonuses and 13th check

Let's say there are 110,000 retirees. I am not sure of the current number. Was 105,000 and I saw close to 145,000 somewhere.

100,000 x $400 for each retiree in 13th ck = $40 million annually.
There are over 100,000 retirees and $400 is a low amount.
I rec'd over that in my first and only year of receiving a 13th ck in 12/99.

It seems so small to us but that is a lot of discretionary money and STRS and HCA have stated no use of discretionary monies until STRS is 30 yrs or below for their unfunded liability (basically a 30 yr debt to payout pensions and the recommended number given by the Ohio Retirement Study Council : ORSC) as well as an 80% funding ratio. Put that together with this crisis as the first priority is pensions and all that is mandated. I am unsure where we now stand on unfunded liability ; it did get down to under 30 yrs with our talented investment staff but I think it is now over 30 yrs again.

The point is, for me, appearance and sensitivity to shareholders in times of crisis. We were all thrilled when investment staff made huge gains for us outperforming their goals. Now, though, in times of struggle for shareholders, one expects their system to exercise prudence and decorum. The hugely overpriced bonuses for these times, is salt in our wounds when we cannot expect ANY relief in the form of 13th cks, or compounded COLAS, etc.

However, small changes could be made to show shareholders, STRS is sensitive to them. I outlined many ways monies could be used differently.

OEA will fight to the death over raising years for retirement. Probably, OFT as well. BUT, that is precisely what the ORSC is considering and is in order for a new time. It would be far from punitive to raise years incrementally as Soc Sec did decades ago beginning 6 yrs out so no one who is close to retiring is affected, having planned this. Of course, NO ONE worried about retirees getting hit AFTER THE FACT of retiring and did not grandfather us in. We would never want that to happen to anyone.

There are ALWAYS ways and means to accomplish goals. STRS puts out rhetoric-same ol. BUT, they CAN make such changes without legislation. Of course, our Union block on the STRS Board will fight that over any compassion for current retirees. BILL LEIBENSPERGER will help any active who wants to write a letter as he has stated previously in Ohio Schools.

Will our new Exec. Direc. stand up to the Board and make recommendations that include bettering conditions for retirees as well? So far, not.

Seems unlikely that HB 315 will go anywhere with school boards and so many against it. ORSC would like to see STRS make changes first towards achieving health goals by upping yrs of retirement along with other changes so as to direct more money into HCSF.

OEA STANDS FIRMLY AGAINST ACTIVES TAKING ANY HIT such as this.

From Alice Marson, November 13, 2008
Subject: Bonuses and 13th check

Hi Molly,

If they have that kind of money to pay bonuses why can’t we merit a 13th check?

Alice Marson
Summit Co. STRS