Helping the NRLN help us

From RH Jones, April 5, 2008
Subject: Fw: NRLN Condemns Chrysler's Elimination Of Retirees' Life Insurance

To all:

We need to join our company brothers and sister retirees in this fight. As our STRS employees are supported by us with a generous OPERS package of retirement benefits, we need the help of the National Retiree Legislative Network (NRLN) in our struggle to get a steady stream of retired teacher health care financing through Ohio's H.B. 315. Let us "check out" the NRLN for help. In these times of high inflation, and on our backs, we retired teachers have supported school funding cuts for too long now. It is time for H.B. 315 to pass. Please send on this opinion message.

RHJones, a retired Ohio STRS educator

This is happening all too often to all our US Company retirees.

From Bill Kadereit, NRLN President, April 4, 2008
Subject: NRLN Condemns Chrysler's Elimination Of Retirees' Life Insurance

NEWS RELEASE - National Retiree Legislative Network
FOR IMMEDIATE RELEASE
For Information Contact:
Bill Kadereit
bkad@sbcglobal.net
214-725-5389
Ed Beltram
719-687-6157
edbeltram@msn.com

Retiree Leader Condemns Chrysler's Elimination Of Life Insurance For Management Retirees

Congress Must Prevent Employers From Stripping Away Benefits Earned By Retirees Through Their Years Of Labor

WASHINGTON (April 4, 2008) - The leader of the National Retiree Legislative Network (NRLN) today condemned Chrysler's decision to no longer extend company-sponsored group life insurance to its management retirees, effective June 1, 2008.

"Chrysler's action is a devastating blow to retirees who had counted on their life insurance to help their surviving spouses pay final medical bills, funeral expenses and hopefully have money remaining to make life a little more comfortable," said Bill Kadereit, NRLN president. "Congress needs to wake up and prevent former employers from stripping away the benefits that retirees earned through decades of dedicated labor."

Kadereit said that Chrysler sent its non-union retirees a "good news, bad news" letter. It announced a one-time lump sum pension payment up to $4,000 for retirees who had the longest service and had been retired 15 years or more. Then the company "sucker punched" the retirees with the news that it would eliminate the life insurance benefit.

"Chrysler executives must be trying to ease their collective conscience by stating the company has made arrangements with MetLife to provide current retirees with a one-time opportunity to purchase life insurance at special group rates," Kadereit said "The one-time bonus pension payment won't offset what retirees in their 60s, 70s and older will have to shell out to continue their life insurance coverage. Retirees are smart, they get this!"

Kadereit said the life insurance coverage is "the absolutely last benefit remaining" for Chrysler management retirees. He said that at the beginning of 2007 the company-sponsored health care benefit was eliminated for management retirees eligible for Medicare. In lieu of providing a medical insurance plan retirees age 65 and older were provided with an annual "Health Care Retirement Account" in the meager annual amount of $1,750 with which to try to replace their health care benefits. The annual cost for family healthcare is often more than $12,000.

"Once-proud retirees are doomed by executives who have nowhere to run for easy expense reductions once retirees lives are ruined," the NRLN president noted. "CEOs axe retiree benefits, in part, to fatten their bonuses. But, are they competent enough to compete otherwise?

"Congress must act to stem the tide of broken corporate promises. Millions of retirees on corporate-sponsored benefit plans have lost or will lose the very standard of living they worked for most of their lives. It is unconscionable to take back what was promised," Kadereit said. "Members of Congress, including their staffs, have shown retirees a very large blind spot. They seem ignorant of the facts and void of any sense of urgency to fix this problem. They need to wake up now, election year or not!"

Based in Washington, D.C., the National Retiree Legislative Network (NRLN) is the only nationwide organization solely dedicated to representing the interests of retirees and future retirees. The NRLN's mission is to secure federal legislation to protect retirees' employer-sponsored pensions and benefits plus keep Social Security and Medicare strong. The NRLN is a non-partisan, grassroots coalition of retiree associations and individual members representing more than two million retired men and women seeking to preserve the retirement benefits they earned during their many years of employment. For more information and to join the grassroots network, visit the NRLN Web site at http://www.nrln.org.

RH Jones: The Big Picture

From RH Jones, April 4, 2008

Subject:The BIG picture is H

To all:

The BIG picture for leveling the playing field with other college graduates here in Ohio rests, in a very large part, with H.B. 315. Having retired teacher health care (HC), financed by a steady stream of funding as outlined in H.B. 315, is ABSOLUTELY essential for Ohio, its young people, and for their educators. All of us may come and go but this investment in Ohio now, and for the future, will be a big help to Ohio’s forward movement.

The drain of charter schools, community schools, or whatever they may be called, has drawn off billions of Ohio’s tax dollars into the pockets of the undeserving who work overtime to get rich by trying to find ways to circumvent the law. Our traditional public schools have always had the checks and balances to insure the wise use of public tax dollars. Profit is not the incentive in our traditional public schools, rather education is.

And with the outstanding efforts and coverage that the press (Such as the Beacon and the Canton Repository, among others.), perhaps our politicians, businesses and our local school boards are beginning to see the green light, not a red light, in the forward progression of this law, and of our state. This bill is as crucial, if not more so, to Ohio and its youngsters, as is paying for textbooks and school buildings. And with the recent increases in un-funded, - and unfounded - mandates that educators have to now put up with, most certainly, the least that can be done is to provide HC in the Ohio teacher’s retirement. Or should even more be drawn away from the profession?

That is my educated opinion.

RHJones, retired STRS teacher member

That white hat is not so white anymore!

Elections panel fines Brennan group $5.2 million
All Children Matter PAC handled $850,000 illegally, Ohio Elections Commission rules
Thursday, April 3, 2008
By Jim Siegel THE COLUMBUS DISPATCH
File David Brennan A record $5.2 million fine was levied this afternoon by the Ohio Elections Commission against a group tied to David Brennan, Ohio’s biggest charter-school operator. The whopping fine was levied against All Children Matter, a political action committee that got and distributed some $850,000 in illegal campaign contributions funneled through Virginia, which has no limits on such money. Brennan, president of Akron-based White Hat Management, a for-profit operator of charter schools in Ohio and six other states, contributed $200,000 of the total. The assessment came on a 5-0 vote of the bipartisan commission, which had earlier warned the committee its actions would violate Ohio law. The group plans an appeal to Franklin County Common Pleas Court.

STRS Board candidates speak to Allen County RTA

From John Curry, April 3, 2008
Subject: April 3, 2008 ACRTA & STRS Board Candidate Dan Vincent

(Photo: Dan Vincent)

Today, at the Allen County RTA meeting, both STRS Board candidates (Tim Myers and Dan Vincent) made presentations to those in attendance. To be fair, both candidates brought up some excellent issues. One part that stood out to STRS reform-minded members in attendance were the following three quotes by Dr. Dan Vincent:

"I am here to pick up where John Lazares left off."

"I am not Dennis Leone; I am not that good."

"I am a proponent of the philosophy of Dennis Leone."

The photo attached to this message is a photo of Dr. Dan Vincent.

John

RH Jones: A message for your state representative

RH Jones to John Curry, April 1, 2008
Subject: Re: Want to see how OPERS treats their retirees?

John and all:

Please forward the message below to your favorite state rep:

A fellow retired STRS member, K. Fluke, PhD, asked me to mention the following; "All Ohio citizens, including retired educators, pay into PERS. Politicians and our STRS employees receive their health care (HC) from PERS. And, did you readers know that PERS pays 100% ofMedicare part "B" while retired teachers only get a fraction? House Bill 315 will help close this gap and even the playing field."

I, R. H. Jones, can not help but feel that the Ohio's political state representatives, will do the right thing and move H.B. 315 out of the FIRES committee and vote it into law - very soon. The Ohio public, most certainly, hold that their teachers are as valuable as the politicians themselves, the STRS employees, and all the other Ohio government employees.

In both writing and orally, we were promised by our employer, the Ohio Public Schools, through their Akron School Districts, and our STRS, that we would have paid HC in our retirement. Had I not been given this promise, at a greater expense to the state and to the Akron School District, I certainly would have taught many, many years longer. Would that have been good for the state, the city, the children, or me? I do not think so.

RHJones, a retired teacher member of STRS

RH Jones: Who is responsible for the 14% cap?

From RH Jones, March 31, 2008
Subject: Att'y Gen. Marc Dann's office answers inquiry of RC 3307.28

Respectfully submitted to all:

Part of my purpose of sending a multi-page letter to the Attorney General Marc Dann was to clear up in my mind when and who was responsible for placing the 14% employer cap onto the Ohio Revised Code (RC) 3307.28. I believe that many retired and active teachers shared my concern. Mr. Kevin M. McIver, Chief of the Opinions Section of Marc Dann’s office very thoroughly and aptly answered my questions. This has been a fine example of the great service this office is doing for Ohio’s people. I thank him for that profusely.

The When:

“The General Assembly raised the STRS employer contribution to a maximum rate in 1976. At that time the provisions that now appear in R.C. 3307.28 appeared in 3307.53. The legislation raised the maximum rate to 14% is 1975-1976 Ohio laws, Part II 2091, 2197 (Am. Sub. H.B. 268, eff. Aug. 20, 1976)…”

Interestingly, some pages from the Ohio laws Mr. McIver kindly sent mentioned, in part, that Am. Sub. H.B. 268 passed on April 29, 1976, was approved and filed on May 21, 1976. “(Certain Provisions of Act effective July 1, 1976)”. The interesting part for educators is that the effective dates came during summer vacation, especially concerning the Aug. 20 date. Note: July 1 is the usual fiscal starting date for public school districts.

Who:

Verne G. Riffe, Jr., Richard J. Celeste, James A. Rhodes, Ted W. Brown, and David A. Johnson signed the R.C. Most are now deceased. Interestingly, they were members of both political parties.

In my opinion, back in 1976, who could have predicted that our health care costs would inflate so dramatically in the 2000’s? In 1976, fortunately for educators, the employer rate for our STRS was raised from 13 to 14%. But, unfortunately, it was capped there. However, the OPERS, SERS and Police/Fire are, now, not included in this unfortunate cap. Mr. McIver stated: “That another retirement system may have the authority to set employer contributions without regard to a statutory maximum does not mean that STRS may set the level of its employer contributions at a rate that exceeds the statutory maximum specified in R.C 3307.28 The general Assembly grants STRS the authority to collect employer contributions, and in so doing has specified a maximum rate for the employer that STRS may not exceed. If STRS desires to set the employer contribution at a level that exceeds the current statutory maximum, it must be granted authority to do so by the General Assembly.”

Now is the time that our STRS needs to have a raise in that 14% cap. The House Bill 315 does just that. And, as in 1976, I hope that both parties can continue to work together once again to pass an increase in the employer contribution. History needs this correction.

Robert Hudson Jones, a STRS retired teacher member

Dredging up the past in order to preserve our future...... (Sorry, OEA, but we need to do this once in a while)

John Curry to Paul Kostyu, March 31, 2008
Subject: Re: STRS spending abuse since 1995-Leone called it to our attention

Paul,

The first major news media coverage of the STRS debacle was posted by the Cleveland Plain Dealer's Stephen Ohlemacher on the front page of the PD on June 8, 2003 entitled, "Teacher Pension Losses Don't Stop Spending." The majority of the misspending that this PD article details are from Dennis Leone's 13 page paper presented to the Ohio STRS on May 16, 2003. I believe the first of your excellent series of STRS articles began after both of these dates.

Agreed that Dennis hadn't "discovered all the revelations" on this list but I think it is more than fair to say that the "majority" of the items listed below were discovered by Dr. Leone.

Once again, thank you for your excellent series of articles re. the Ohio STRS. May I suggest a follow-up article by you sometime this spring re. 5-years later and Dennis is still facing much of the mismanagement, misspending, and entitlement mentality by the majority of the STRS Board and its current Executive Director? If in doubt, you might want to contact Dennis about this.
John

From Paul Kostyu, March 31, 2008
Subject: RE: STRS spending abuse since 1995-Leone called it to our attention

I believe it would be a misrepresentation of the truth to say that Leone "discovered" all of the revelations on your list. It would be more accurate to say Dennis's initial investigation into STRS spending may have contributed to the other revelations. Maybe his discovered these revelations by reading news accounts -- primarily in the Cleveland Plain Dealer and Canton Repository. But everyone should know that the news media was largely responsible for first uncovering much of what is on your list. Teachers, retired or current, shouldn't be involved in revisitionist history.

Best regards,

Paul E. Kostyu
Statehouse Bureau Chief
GateHouse Media
50 W. Broad St., Suite 1325
Columbus, Ohio 43215
Phone: 614-222-8901
Fax: 614-222-0032

From Lenora Wood, March 30, 2008
Subject: FW: STRS spending abuse since 1995-Leone called it to our attention

COLLEAGUES -- AS PROMISED, AND LESS WE FORGET, HERE IS THE LIST OF ABUSES DENNIS LEONE FOUND IN 2005 AND BROUGHT TO OUR, AND THE MEDIA'S ATTENTION AND WHICH BROUGHT SWEEPING CHANGES IN OUR STRS ORGANIZATION AND SWEPT HIM INTO OFFICE ONTO THE STRS BOARD. IN DOING SO HE HAS HAD TO TAKE A LOT OF GUFF. AND IT LOOKS LIKE THINGS ARE GOING DOWN THE SAME OLD TRACK THAT OUR LAST DISGRACED LEADER WENT DOWN AND WHO FINALLY WENT OUT WITH A GOLDEN PARACHUTE THAT COST US SO MUCH OF OUR PENSION FUNDS. WE CANNOT ALLOW AGAIN THE HANDING OUT OF CREDIT CARDS AND TRAVEL TO EXOTIC LANDS (TO LOOK FOR POSSIBLE 'INVESTMENT'S) PAID FOR OUT OF OUR PENSION FUNDS. THE STRS BOARD HAS TO GET REAL AND REMEMBER THAT WE WORKED HARD FOR THE PENSION MONIES THAT THEY ARE SUPPOSED TO GUARD AND SPEND WISELY. WE HAVE ALREADY LOST SO MUCH: A POOR HEALTH CARE PLAN, NO EXTRA 13TH DECEMBER CHECK. SOME OF YOU YOUNGER RETIREES NEVER GOT THAT WELCOME CHECK. AND WITH INFLATION AND THE POOR ECONOMY, OUR PENSION CHECK: JUST WON'T COVER WHAT IT USED TO. OUR BOARD NEEDS TO GET LEAN AND CONSERVE EVERY DOLLAR WE HAVE FOR US: RETIREES AND FUTURE RETIREES. WE CANNOT HAVE ANOTHER CHIEF EXECUTIVE WHO THINKS HE ALONE CAN RUN THE SHOW. REMEMBER DYER? IT WAS HE WHO WROTE HIS OWN CONTRACT THAT ALLOWED HIM TO RETIRE IN COMFORT AND BUILD THAT HALF-MILLION DOLLAR HOUSE IN THE EAST. LET'S ALL SCREAM TO THE HIGH HEAVENS!!!!!

LEN AND CHUCK WOOD

John Curry to Bill Leibensperger, October 22, 2005
Subject: STRS spending abuse since 1995 -- Leone called it to our attention

Bill, after talking to Molly, I understand you believe that some of Dr. Leone's findings might have been exaggerated. Please correct me if that's not the case. Below is a list of items Dr. Leone has given as examples misspending and mismanagement at Ohio STRS. Would you please comment on any item or items below that you feel is not completely truthful and factual and/or any other items that you think Dennis might have not portrayed properly? This would be an excellent opportunity for you and the OEA to enlighten tens of thousands of STRS retirees who are still waiting for an explanation of why your OEA President Gary Allen said that Dr. Leone's "logic is hard to follow," and that "his motives are unclear." This may help us understand for once and for all. Now would be an excellent time to clear up any disagreements your organization may have with Leone's findings before your organization and my organization sit on the same side of the table to tell Ohio voters why increased contribution rates are necessary Thank you.

John Curry, a Proud CORE member

P.S. I would have asked you this in person this past Thursday at the STRS meeting, but I had to work (after my STRS retirement). I simply can't afford what many recent OEA member speakers to the STRS board in the September meeting portrayed to the Board as a CURRENTLY "affordable" health care insurance offering to my spouse and I by STRS.

The following represent a number of spending abuses discovered by Dennis Leone that occurred at STRS since 1995.

1. $94.2 million on the new STRS headquarters.

2. $869,235 on artwork, sculptures and polished stones for the new STRS building.

3. $818,000 on a child care services center for the children of STRS employees.

4. $500,000 per year to run the child care services center.

5. $426,000 on a fitness center in the STRS building.

6. $88,397 per year to provide food services for STRS employees.

7. $428,056 on 16 cars, vans, and SUV's.

8. STRS Board policy that permitted staff members to drive STRS vehicles for personal use, and the family members of said employees to drive said vehicles.

9. 52 American Express Credit Cards and 20 BG gas cards used Board members and STRS staff members.

10. Alcohol purchases occurred by staff members and Board members attending conferences -- using STRS credit cards.

11. $18,810 on "Discovery Park" gala event, including the purchase of disposable cameras for attendees.

12. $15,100 on new STRS building dedication, including alcohol and gifts for attendees, as well as airfare and lodging for out-of-town STRS visitors.

13. $4,100 on a private retirement party for an STRS Board member.

14. $5,594 on poinsettias to decorate STRS during the holiday season in 2002.

15. $1,000 dinners for 12 board members/staff members on 2 occasions, again with alcohol.

16. $7,116 for baseball tickets, concert tickets, movie rentals, and Kings Island tickets for STRS employees in the summer of 2003 for "team building."

17. $530,284 spent by Board on trips and meetings around the country in 2000, 2001, and 2002.

18. Multiple trips taken by Board members and staff to places like Honolulu, Palm Springs, Kiawah Island, and Anchorage. A planned trip to China in 1995 was cancelled after it was suggested that it would have the appearance of junketeering.

19. Frequent occurrences of at least 6 Board members going to the same meeting, sometimes twice a year, costing STRS over $9,000 each year.

20. $36,736 spent by a Board member Jack Chapman in a single year for trips all over the country.

21. $1,017 airplane ticket for a Board member that would have cost $258 if it had been purchased 30 days in advance of the conference.

22. $1 million cash payback per year to full-time STRS employees for 18 days of unused staff vacation days and unused sick leave.

23. Total administrative expenses at STRS increased 17.4% per year between 1996 and 2002.

24. Total STRS employees increased from 414 to 725 between 1996 and 2002.

25. A total of 1,035 employee bonus checks were issued to STRS staff in 2000, 2001 and 2002.

26. $24.4 million was awarded in bonus checks to employees between 1998 and 2003.

27. $3.2 million had to be paid by STRS to PERS because of bonuses alone since 1998 to satisfy that pension system's 13.31% annual employee contribution requirement. STRS employees are members of PERS.

28. 34 STRS employees in 2002 received bonus checks in excess of $40,000 (with 18 of those getting bonuses in excess of $70,000).

29. One STRS employee received bonus checks of $110,000 and $68,800 in 2001 on top his base salary of $164,000.

30. Over 150 STRS employees had base salaries over $100,000 in 2002, with 32 of those making over $155,000 -- topping the salaries of both the governor and the chief justice of the State Supreme Court.

31. A total of $39,251 was paid to the Perry Local School District by STRS in 2002 and 2003 for sub teacher costs for Board member Michael Billirakis (when he attended STRS meetings), even though he did not have a position in the school district. NEA pays Perry Local the dollar amount associated with the salary and benefits for Billirakis, enabling him to be listed as an employee.

32. Excess STRS furniture was sold to STRS employees in 2000 and 2001 for $27,703, and instead of this amount going back into the pension fund, it was given to charities.

33. The regular work week for STRS employees is 37 1/2 hours.

34. If an STRS employee adopts a child, the STRS Board awards a $5,000 cash gift to said employee.

35. Between 1999 and 2004, the STRS Board paid out $2.1 million in educational stipends for STRS employees to take college courses. This amount was double what the other 4 public pension systems in Ohio paid out combined over the same time period. STRS pays up to $7,000 per year (per employee) for undergraduate or graduate work.

Lenora Wood: Showing strength in CORE

From Dr. Lenora Wood, March 30, 2008
Subject: FW: a MUST READ for any STRS contributing active educator or STRS retiree!!!!!!!!!!!!!!!!!!!!!!!!!!

COLLEAGUES We must all get involved with our CORE organization again by rejoining (read previous e-mail). We need as many names on the list to demonstrate to the STRS board and everyone else that we have strength. As soon as I get the membership form it will be forwarded to all of you and you can get as many members as you can in order to increase our numbers. Thank goodness for Dennis Leone down there, but he has to take a lot of guff from those board members who are trying to dip into our funds again. HANDING OUT STRS CREDIT CARDS TO THEM AGAIN!!!!! And remember the e-mail where it states that some of them want to travel to far countries to 'check on investing in them?' MORE FREE TRAVEL WITH ALL EXPENSES PAID. I SAY NO MORE! NOT AGAIN!!!!! Less we forget what went on before, I'll hunt up what Dennis Leone discovered and put a stop to before. Let's band together and let them know WE'RE NOT GOING DOWN THAT PATH AGAIN!!!!!

LEN

CEA Blog Examines Charter School Chain Statistics

From Phil Hayes, March 28, 2008

The Ohio Federation of Teachers (OFT) sent the IRS a letter asking it to investigate whether charter schools managed by White Hat Management, Inc. and its affiliates can properly claim 503(c) tax-exempt status.

White Hat Management and its affiliates operate the “Life Skills” and “Hope Academy” charter schools in Ohio, Florida and Arizona. OFT states that the schools are merely a tax-exempt “pass through” to funnel money to the management company– $84 million tax dollars per year. The Ohio Department of Education database recorded information for 17 Life Skills Centers and 12 Hope Academy locations throughout the state; when examined, the data paints a disturbing picture of what results Ohioans are receiving for their $84 million dollars in tax money diverted from public school districts.

The CEA [Columbus Education Association] Blog has done a series of posts regarding these recent developments: Click here to examine ODE’s information on Life Skills Centers including state and federal standards met, enrollment, class size and teacher pay. Click here to examine ODE’s information on Hope Academy locations including state and federal standards met, enrollment, class size and teacher pay. Click here to see what bloggers and traditional media outlets have to say about the OFT’s letter.

Mr. Hayes Social Studies Teacher Legacy Small School on the Brookhaven Campus 4077 Karl Road Columbus, Ohio 43224 Voice:(614) 365-5985 Fax: (614) 365-6965 http://misterhayes.homestead.com http://projectovercome.homestead.com