Tom Curtis to Steve Mitchell: Would there ever be a decrease in our pension benefit?

From Tom Curtis, November 1, 2008
Subject: An SERS pension is guaranteed by Ohio law and "cannot be reduced due to investment losses." How 'bout STRS pensions????????????

Hello Steve,

I hope all is well with you and your family, and your STRS family.

I received the following information from John Curry. Am I correct in thinking the STRS falls under these same guidelines?

An SERS pension is guaranteed by Ohio law and "cannot be reduced due to investment losses." How 'bout STRS pensions???????????? [Link to article]

The information indicates that public pension defined benefit (DB) plans are guaranteed by law and pensions cannot be reduced due to market losses. Will you verify that the STRS falls under these same guidelines and laws?

The information also indicates, due to the structure of DB plans, they are designed to withstand 20% losses. What about the 31.25% loss the STRS has had over this past year, (Oct 2007 to Oct 2008 = $25 billion loss in value)?

I have had many people ask me if we would ever see a decease in our pension benefit, once retired. How would you answer that question?

Thank you for a timely response,

Tom Curtis
STRS retiree