RH Jones: To keep the feds off our doorstep, we need to keep our house clean

From RH Jones, November 10, 2008
Subject: Our STRS may have to change under Obama?

To all:

David Pitt, writer for the Associated Press, in the Sunday Beacon article entitled Retirement plans could change under Obama. He wrote this: “---prohibiting companies from giving executive bonuses while cutting worker pensions, and limiting the circumstances under which retiree benefits can be reduced.”

Of course STRS is not a business but, nevertheless, our retiree benefits have been reduced by loss of our 13th check, greatly increased health care (HC) costs, and inflation of the dollar. As it was during the Enron/World Com crisis, a STRS investment loss of $25 billion is once again “beyond the pale”. Many retired STRS members objected, back then, and were concerned by the lack of foresight on the part of some in our investment staff. An astute investment team can create wealth in down times. Those staff investors who do grow the STRS should be rewarded with proper bonuses; those who do not should not! As history is once again repeating itself, as before, I ask that our STRS board rescind their plans for investment staff bonuses and revise it to give bonuses only to those who have caused our STRS funds to increase and move forward.

Further, I think that this 2008 bonus plan was bad timing due to the OSBA and the OASBO opposition to the HB 315. The many wonderful bi-partisan Ohio legislators, for the benefit of all Ohio STRS members, employees, students and citizens, are now resurrecting 315. In the process, these 2008 bonuses have hurt the STRS “bottom line”. They have given the opposition new reasons to fail our need for increased HC and the over all health of the system shown in HB 315. Our board should must do the right thing and make the proper changes for 2009 and beyond. This retiree does not want any outside sources (namely Washington) to come in and dictate to our STRS. To keep this from happening, at all times we need to keep our own house clean and aware of public relations.

My opinion,
RHJones,
Retired STRS member