Jim N. Reed's letter to the Editor of the Lancaster Eagle-Gazette

From Jim N. Reed, March 11, 2009
Letter to be published in the Lancaster Eagle-Gazette

Ohio's State Teachers' Retirement System (STRS) has hemorrhaged 40% of its assets to the tune of $33 billion in the past 16 months.

Granted, there are many corporations, businesses, organizations, agencies and families suffering. How many school districts are cutting budgets by altering curriculum, reducing certified and non-certified staff, slicing services, freezing or cutting salaries and increasing pay-to-play?

Nevertheless, some entities continue entitlement philosophies and are awarding bonuses and raising salaries under the management ruse that they cannot afford to let their "experts" get away. Besides, they claim, "It's happening everywhere."

During this economic contraction, $6 million in Executive Director-approved bonuses (paid by stakeholders, boards of education and taxpayers) have been awarded to STRS investment staff, rewards for losing less assets than other failed investment counselors. Though a temporary freeze has been placed on the bonus policy, associates will still receive partial bonuses, some in excess of $100,000.

What of base salaries and raises? Sixty-six employees have base salaries of $140,000 to $529,000, higher than the governor's. Thirty-three associates received base salary raises from $10,000 to $39,000. The latter figure represents more than many retirees' annual pension.

How serious is it? Darn serious when you consider it has provoked a warning from one Board member that, with further significant stock market failure, current and prospective retirees' pensions can no longer be considered secure despite the recent ill-advised "all is fine" STRS communications to the membership.

Not acceptable. 440,000 active and retired educators and beneficiaries deserve better.

What to do? A vigilant STRS-literate membership is mandatory. Independent thinkers, proponents of reform are needed on the Board. In April's STRS Board election Concerned Ohio Retired Educators endorses the candidacies of Jim Stoll (Stoll@sycamoreschools.org) for the active seat and Bob Stein (bobstein@bobstein.us) and Jim McGreevy (jmcgree@Columbus.rr.com) for the two retired seats. A new blood transfusion is needed to stop the hemorrhaging at STRS.

All Fairfield County educators, active and retired, are encouraged to do their homework and vote.

Jim N. Reed
Baltimore, Ohio