Letter from the Seamans to Speaker Budish and two Representatives

From Donna and Dean Seaman, June 4, 2009
Subject: HB 177

Dear Speaker Budish, Rep. Goyal and Rep. McClain:

Please continue to support HB 177 and schedule a second hearing on this important issue. We are Ohio retired teachers who receive pensions from Ohio's State Teachers Retirement System (STRS), and have followed closely for years the mismanagement of retired teachers' funds, and past ethics violations of STRS leaders and board members.

HB 177 would prohibit STRS from paying its own investment staff bonuses (they call them performance based incentives!) in years when the total fund is in a downturn, as it is now. As you know, the STRS board has permitted and encouraged enormous bonuses to STRS investment staff who are already extremely well paid and have far better fringe benefits than any Ohio teacher, working or retired, ever had! These bonuses, paid to staff for the past several years, have totaled millions of dollars on top of salaries that are averaging $150,000 per year plus.

The STRS portfolio value is in the same economic crisis as the rest of our state and nation, and indeed is down at the moment over 40% or $32 BILLION this fiscal year. For the STRS board to even consider paying bonuses to investment staff is insane! Many of us retired teachers have pleaded individually and collectively with board members to totally remove, once and for all, any incentives. Personally Dean and I would want to see incentives removed forever, but particularly so when the fund is showing substantial losses as it is currently.

STRS operations continue as "business as usual." There have been NO cutbacks in STRS staff, no reductions of benefits or salaries, and virtually no efforts to cut expenses. Meanwhile the STRS board has cut health care benefits for retirees, increased co pays and premiums, now discusses ways to further reduce health care coverage including reducing our cost of living adjustment from 3% to 2%. Retirees are suffering because of STRS losses and continued exorbitant spending, but STRS employees are not impacted at all!

Please continue to support this issue and schedule another hearing. Ohio's teachers depend on our legislators to begin oversight of STRS operations and spending!

Thank you,.

Donna Seaman, 2002 retiree; Dean Seaman, 1986 retiree
Shelby, Ohio