Nancy Hamant’s speech to STRS Board, May 14, 2009

Thank you, Mr. Nehf and STRS Board Members for the opportunity to share my concerns today. I am Nancy Hamant, a 28.6 years STRS member. Please carefully listen to the following three scenarios, as I will be asking you to consider questions about each.

Scenario 1
Mr. Nehf, your 96-year-old aunt won Ohio’s Megamillions Lottery. Her prize was around $20 million. Unfortunately, her heart could not take the surprise. As her favorite nephew, she left the money to you.

Scenario 2
Mr. Mitchell, your wife just received an appointment as an Ohio Supreme Court judge. Her annual salary will be $425,000. Your wife will have lifetime health insurance coverage and a pension calculated at 88% of her Supreme Court salary. You are eligible to receive health insurance through your wife’s policy and, of course, will benefit from her retirement.

Scenario 3
Ms. Knoesel, at much expense, you paid for your daughter’s college, including a doctorate in microbiology. Your daughter has just developed the formula for making biodiesel from plants that grow wild and rapidly in the desert regions of the world. Your daughter’s patent royalties make her extremely wealthy. Your daughter expresses her thanks to you by buying you a $2 million condo in Naples, Florida.

STRS Board and Mr. Nehf, please consider the following questions for each of the scenarios:

Should any of the scenario facts be used to calculate your annual salaries?

Should any of the scenario facts be used to calculate your annual pension?

Should any of the scenario facts be used to calculate your health insurance premiums or benefits?

Now please listen to the following paragraph from the March 2009 STRS Newsletter on page 3:

“Nine out of 10 retirees have at least one additional source of income; seven out of 10 have at least two additional sources of income. On average, STRS Ohio provides about 58% of retirees’ income.”

STRS Board and Mr. Nehf, please consider the following questions in regards to the March STRS Newsletter information:

Should any of the paragraph information be used to calculate an STRS member’s salary?

Should any of the paragraph information be used to calculate an STRS member’s annual pension?

Should any of the paragraph information be used to calculate an STRS member’s health insurance premium or benefits?

Why, why, WHY is STRS collecting this data and reporting it? Heaven forbid, if STRS is paying a high-priced consultant to collect and report such information! The data is not necessary for helping those STRS members who are in need, as STRS may use annual IRS forms for that purpose. Why is this information any of STRS staff’s or anyone else’s business? Several times a year, either at STRS meetings or in publications, references are made to “other sources of income” or “access to a spouse’s health care,” as was done at the April Board meeting. Why, why, WHY is it necessary? It is an invasion of privacy!!! So, STRS, either fully explain the reasons for collecting and reporting such data for each case and why it is absolutely necessary – or stop it! AS IT IS REALLY NONE OF STRS’s BUSINESS!!!