Molly Janczyk to STRS Board: Thank you for suspending the bonuses

From Molly Janczyk, January 26, 2009
Subject: Suspended Bonuses

I wish to extend my appreciation to those who considered the unusual times of economic crisis and voted to change STRS policy regarding PBI's along with other cost conserving measures. This brings a measure of confidence to shareholders that someone recognizes our plight and is cutting back accordingly as much of American business and Wall St. are doing. How can one ask for trust when there remained such high reward for little gain for shareholders? STRS exists due to its membership and membership deserves a measure of insight by those who work for them yet are paid such elaborate salaries with many perks we will never understand as we worked for intrinsic rewards.

We understand the need to remain competitive but times dictate a degree of sensitivity with cutbacks showing understanding of the severity endured by membership. To those who do not comprehend this and only think of staff much better off, it is shameful as stated below. First is membership. These are harsh times and most are lucky to have such good jobs. Few places are open to such rewards in these times and to continue extravagance in such times is beyond insulting and rubs salt in retirees' deep wounds. HC goes up and our simple COLAs do not meet our inflated costs. Each year we lose more money as a result.

Now STRS is considering getting rid of the Medicare group with Medicare Advantage plans in spite of ALL the bad press against such plans. It is clear this generation of retirees has not yet paid its full price of maintaining the HC Fund for future retirees. We are a written off nameless faces group. We are the sacrificial lambs to pave the way for today's active educators.

Our premiums are over $900 per month (approx. $11,000 annually JUST FOR PREMIUMS) for a married couple plus all the out of pocket expenses. On top of that: each year, we have $500 deductibles EACH; $1500 max out of pockets EACH for copays; $2000 max EACH for RX's. Then vision costs and dental.

WHY? No vision by STRS. Instead Dyer and OEA said it was necessary in the early 90's to work towards ensuring health care fund legislation when the issue was raised though all knew health care would be prohibitive in 10 yrs as Joe Endry said back then. Trends had begun and were ignored and Dyer said he wanted out of the HC business. Strangely, STRS continued to tell retirees they'd never have to worry about HC with STRS being 2nd to one and the premiere pension system.

'No long term planning towards finding a stream of revenue for the HCSF (Health Care Stabilization Fund) and STRS relied too heavily on the market and so retirees were too heavily burdened with saving HC.' Tom Mooney stated this late 2002 / early 2003.

Now, we have little hope of ever seeing HC last our retirement lives. Now, STRS wants to enroll us in Medicare Advantage Plans when all we have heard is bad news about them. Making it year to year is difficult and many have used their personal funds up, sold homes and cut meds and treatments and Dr. visits.

We are only numbers and names on a piece of paper and not much more, it seems. Tim Myers, Cervantes, Meuser are all union driven and STRS behaved doing whatever they are told to keep company policy in place, obey STRS and union dictates. It seems they never question or think beyond what they are told.

Thank you to all who realized how policy affected membership -- real people -- and followed much of big business and Wall St., mayors, governors, etc. to freeze salaries, cut or stop bonuses because it is the right thing to do.

Molly Janczyk
STRS Retiree