Ralph Roshong's speech to STRS Board, April 23, 2009

[Reconstructed by Mr. Roshong from notes he used for his speech]

Good afternoon. I am Ralph Roshong, a 1991 retiree from STRS. I thank you for again allowing the public an opportunity to share their thoughts with you concerning STRS issues.

When I began attending these meeting in 1998, the large issue was "STRS had so much money they did not know what to do with it." I pleaded with the board and several state legislators to not allow the large permanent increases in retirement benefits that was being proposed. Rather you should add to the health care fund, increase thirteenth check or give contributing teachers and school boards a holiday for their monthly contributions. Instead, the self serving Board granted themselves a very large increase in their personal pensions. I felt they should not have been eligible to grant themselves a raise like that and should have recused themselves from the issues. Now, our pension fund can no longer sustain these types of payments because of the drastic decline in our investment earnings.

In the near future, you will be addressing the issue of possibly reducing pensions for future retirees. I should think several of you five active Board members are very close to retiring and it will be very difficult for you to keep your personal issues out of your decision on what is best for the "SYSTEM". I sincerely hope that you can carry out this task during these most serious deliberations.

When the appropriate changes are finally decided by the Board to bring the future of our pension fund into proper alignment for successful longevity, I feel that ALL of the potential reduction factors involved in determining our pensions, must be implemented to the necessary degree, and not one or two of the factors.

In addressing healthcare changes to promote the longevity of that fund, I would make a few suggestions for consideration: create a possible third level of hospitalization as an option for retirees, to protect those who retired at a very low FAS, before salaries took off, and hold them harmless from increases, and investigate if there are any efforts to slow down the regional escalation of duplication of very expensive services at facilities that are very close to each other. These duplications of equipment and services are being paid for by all of our insurances.

The bonus system, in my opinion, is the most complicated and complex formula I have ever witnessed and with its complexity, assures high bonuses regardless of what occurs in the markets. Maybe a simple idea might be if the investment department says our funds are expected to grow 8% in a year, then no one receives a bonus consideration unless this occurs and then within a thoroughly revised formula system.

You deliberated for just short of an hour on a motion to "suspend out of state travel for board members." You then voted to not suspend. I felt this was a highly inordinate amount of time for an issue that was practically a non-issue, as no one has been doing this anyway, if one would see fit to attend one, the board could approve it on its own merits. The simple and quick passage of this motion would have demonstrated a show of faith by the Board to membership that the Board was serious in their deliberations in keeping the pension fund solvent. With the demonstration of inability to handle this simple task expeditiously, I wonder how the extremely serious decisions on the long term savings of our pension fund will be handled.

Thank you very much for allowing me to address the Board and the very best of luck in your future deliberations.