Shirlee Zerkel to Mary Ann Cervantes: Please explain your stand

From Shirlee Zerkel, April 8, 2009
Subject: PBIs, bonuses, retention money!

Dear Ms. Cervantes:

At a time in our economy when bonuses that corporations give are frowned upon by all, STRS is still discussing and giving bonuses and raises to some staff members with the reasons being given as value -added, exceeding the benchmark, or retention.

I am puzzled and angry by your opposition to the suspension of investment staff PBIs in the present economic climate. You only changed your vote after Mr. Nehf said that he could live with it. This tells me that you are more interested in taking care of the STRS staff than following the ORC and doing what is right for the retirement system and the retirees.

I also noted that you voted 'no' to the motion that staff put in a 40 hour week at the same pay. Why aren't these suitable measures to take when other employers in the country are laying off staff, reducing wages, freezing bonuses in order to stay afloat, yet it appears that you and some other board members do not want the STRS staff touched in any way by this downturn.

Get real! The system has lost 33 billion dollars of our total assets. We, according to the staff, have to cut retiree health care by $81 million for the year 2010. Our pensions at this point in time are not secure! But STRS staff and board hold many discussions about bonuses, raises, etc for the staff. But when the STRS staff presents cuts in benefits to the retirees, I hear no questions or discussion on the topic from you. It appears to be 'let's follow what the staff says is needed.'

You were elected to the board to be the watchdog of the teachers' funds, not give bonuses to the staff and watch the retirement system go down the tubes. By trying so hard to be a good board member to the staff, you are screwing yourself and your fellow educators out of benefits and maybe even a future pension.

If the above is not the reason for your opposition, please explain your stand to me, other retirees and actives.

Sincerely,
Shirlee Zerkel