RH Jones: Take our COLA? No way!

From RH Jones, May 18, 2009
Subject: Inmates allegedly running a mental hospital?

To all:

When any OH STRS annuitant, board member, or employee suggests or thinks that retired educators need to accept a drop in our uncompounded COLA, needs to know that America is indeed moving toward a ‘tilt’ in inflation. Ever since the Reagan/Alan Greenspan’s disastrous reform of Social Security (SS), retired educators living throughout our country, therefore, have been subsidizing the national treasury. And the growing national spending is being subsidized by the extra funding being paid into SS from payroll taxes. We retired STRS members pay taxes. When this funding and other tax sources reaches less than the national debt we, of course, have inflation. Resources will have surpassed taxpayers total worth. To reduce our COLA would be like yet another added tax onto us retirees.

As you can plainly see, we STRS retirees have already been subsidizing government spending; and, now, some want to take our COLA to further subsidize government, I say: No way! And retirees knowing why, sadly, Columbus and Washington will probably be seeing my gray heads having to demonstrate. The already increased retiree subsidization of HC/Rx, and loss of the inflation fighting once per year subsidy (13th check), any further cuts would be shameful to say the least.

Rather than think of cutting retirees once again, may I suggest that our well-paid STRS investment staff to buy into inflation fighting Treasury Inflation Protected Securities, real-estate investment trusts (REITs) and green energy companies both foreign and domestic. REITs, in particular, are low in price now and will explode when the pent-up up demand begins once again.

Lightning movement out of failing investments is also crucial. This was not done in the down market of the year 2000, nor 2008. It should never ever happen again. Spend more time and energy on creating positive growth, rather than, negatively, cutting of retiree assets; there is never any justification for further hurt to the retiree.

Do not even think about using the bent backs of retirees to subsidize a shortfall in revenue. Intelligent and astute investing will move the assets of our STRS, our state, and our nation forward.

The opinion of a 77-year old retired STRS member,

RHJones