Bob Stein, candidate for retired seat on STRS Board

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Bob Stein is the only STRS candidate with a specific plan to improve investment returns.

We must recover benefit cuts of the last 10 years as well as make STRS sound. Future benefits and pensions are not fully secure unless the fund is growing.

Health Care -- Retirement without healthcare is not really retirement. Requiring retirees to pay increasing health care costs slashed spendable pension dollars. Expect higher costs next year. Increasing investment returns by 1 1/2 percentage points could fully fund retirees’ health care. This is reasonable if the recommended investment reforms are adopted.

Cost of Living Adjustment -- Current COLA is not compounded and only slows purchasing-power losses during retirement. 1977 retirees have lost 14% in purchasing power since retiring. ($140 loss for every $1000 in your pension.) This does not include increased health care costs that come directly out of pensions. STRS should cover real cost of living increases.

Better investment strategies must be implemented. -- STRS’s investment advisory firm's plan has similarities to mine but we have not adopted anything close to either one. Global markets are maturing. Without proper adaptation our fund will continue to suffer large market shocks.

How A Pension Fund is Different

Most people are used to budget systems like households or schools where the incomes are relatively fixed by employers or tax rates. The best control they have is over expenses. We know such situations well and tend to see controlling expenses as THE solution to any money problem. Pension funds, however, are primarily large investors with payroll-dependent income that creates investment income. Contributions at 24% of your salary plus investment returns should pay your pension. While control of expenses is desirable, investment income is absolutely necessary in order to pay benefits.

Stopping losses and improving returns should be our first focus. Expenses can only be cut to a certain degree before the only cut left is pension benefits. For example, 2008 administrative costs were near $0.065 Billion. Total pension benefits are almost $5 Billion. Eliminating ALL administrative costs might pay for about 1 day of pension benefits. At $30+ Billion, losses since our fund’s recent peak represent about 6 years of pension checks.

As you can see, creating income from investments is many times more important than any other activity STRS undertakes. It may be our only real choice. We’ve lost 35+% because STRS investments follow US stock markets too closely. Not “everybody” is losing money in this economic decline. Our investment model needs updating. We must adopt strategies that allow better returns and avoid wide stock market swings.

Income from increased payroll contributions requires legislation that is unlikely in tough economic times. The only realistic choice is better investment returns.

The board must decide. Staff and advisors can’t make investment policy regardless of what they know.

We need more investment experience and training on the STRS board.

Vote Bob Stein for STRS

Bob Stein

for the STRS Board

Unique Experience

· SEC Registered Investment Advisor

· NASD licensed securities broker

· 27+ Years of teaching

· College for Financial Planning

Investments, Taxes, Insurance, Retirement and Estate Planning, Employee Benefits

Since 1972 Bob has traded and invested in stocks, bonds, real estate, partnerships, futures contracts of all types, and foreign exchange.

Bob Stein is the only candidate with:

· Broad Investment Experience

· Financial Training

A real plan to improve investment performance.

Endorsed by Concerned Ohio Retired Educators

www.BobStein.us for details and a complete bio

3.16.09