Monday, December 15, 2008

Molly Janczyk re: The 35 year rule

From Molly Janczyk, December 14, 2008
RE: **(see bottom) STRS & Ethics: My Opinion
The 35 yr rule is current educators receive 88% of their salary if they retire with 35 yrs. It was put into effect under Dyer and former STRS Board members: Chapman, Billirakis, Scott, Sidaway, Norris and Endry -- most or all who benefited from it -- except Endry who was the retired Board member.
Retirees benefited also. This was all part of a bill passed retro to '99. Retirees who retired '99 and later with 30 yrs. received a 2.2% per year increase from 2.1%. Older retirees got a benefit that increased their pensions to include inflation to a certain %. I forget all the details but do have them somewhere.
Problem is: Retirees are losing money every year with simple stagnant COLAS of 3% based on their first year of retirement and never increases. We are then affected with soaring health care costs and inflation, so each year we lose more money from our pensions. We are decreasing each year in money to live.
Actives can go for the 35 yr rule and while they do, salaries increase and their top 3 yrs for their final average salaries is what they are given 88% of in pensions.
It seems only fair that this all be equaled up a bit.
From (?), December 14, 2008
Subject: Re: **(see bottom) STRS & Ethics: My Opinion
Would you please explain the "35 year rule" in relation to current employees and retirees?
Larry KehresMount Union Collge
Division III
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