Lima News: The Huffman bill and a subsequent STRS bonus vote

STRS board decision mirrors Huffman's bill

Lima News, May 15, 2009
Beth L. Jokinen

COLUMBUS - The State Teacher Retirement System (STRS) board voted Friday to eventually do the same thing a local state representative hopes to put into law.

The board voted that starting in fiscal year 2011, no performance-based incentives will be paid out to investment staff if the retirement fund sees a negative overall return, said board member Dennis Leone, of Chillicothe.

Ohio Rep. Matt Huffman, R-Lima, introduced legislation earlier this week that would ban the STRS bonuses when the fund is not making money.

"Rep Huffman's bill had an impact on those votes occurring," Leone said. "I appreciate him stepping up to plate with the proposal."

All eight STRS board members approved the decision. The board also voted to eliminate bonuses in fiscal year 2010, which begins in July, if there is a negative return.

Also, for the investment staff to qualify for bonus potential, the fund's total asset has to climb to at least $65 billion. It is currently $51 billion. If there is an increase, but it doesn't reach the $65 billion, a formula will determine the bonus amounts.

The staff could still see bonuses from the first half of fiscal year 2009, which ends June 30. The board suspended its existing bonus program for the second half of fiscal year 2009, meaning the payments are based on just the first half of the fiscal year.

Preliminary reports show bonuses likely paid for fiscal year 2009 to about 90 employees total nearly $3.4 million. They range from $162,488 and $480. Leone made a motion to not pay the bonuses, but it died for a lack of a second. The board still needs to approve the bonuses by its September meeting.

http://www.limaohio.com/news/board-37401-bonuses-fiscal.html