Letter to Representative Kevin Bacon re: HB 177

The Honorable Kevin Bacon
The Ohio House of Representatives
77 South High Street
10th Floor
Columbus, OH 43215-6111

June 4, 2009

Dear Representative Bacon,

On Tuesday of this week (June 2, 2009), HB 177 was given a first hearing. As you know, if passed, this bill would prohibit the awarding of performance-based incentives (bonuses; PBIs) to investment personnel or other employees of the State Teachers Retirement System of Ohio in years of negative investment returns. The STRS Board, in the midst of a drastic downturn in the nation's economy and in its infinite lack of wisdom and common sense, has CONTINUED to award MILLIONS of dollars in bonuses to the investment personnel, except for a brief period, in spite of repeated outcries from the STRS membership; mainly retirees, since the Ohio Education Association has failed miserably in its job of keeping the active membership informed about such matters.

It is wrong, wrong, WRONG that 87 investment personnel, who are highly paid to begin with, and who still have jobs, unlike thousands of their counterparts on Wall Street, should become very wealthy at the expense of thousands of retirees, many of whom are barely able to make ends meet and whose healthcare premiums continue to skyrocket while their benefits plummet. At every STRS Board meeting, we hear more and more talk about how they want to make up shortfalls by taking money away from retirees. Right now the Board is talking about taking away our COLAs and stopping healthcare altogether for those of us who are Medicare age; that will shorten a lot of lives right there.

I know the investment personnel are not to blame for what happened to the economy and deserve generous bonuses when the money is rolling in. However, right now I need to see some real evidence of belt-tightening at STRS, as is being done everywhere; and having lost many BILLIONS of dollars in the past year, no matter where the fault lies, it would seem the best place to start is with those bonuses. It is obscene that they should still be awarded when times are this tough. I don't want to see their big, fancy houses, cars, vacations and giant bonuses; I want to see food on the table for those who are having a hard time and medicine provided for those whose lives depend on it; and necessary medical procedures for those who need them to survive. HB 177 badly needs and deserves a second hearing. I cannot urge you strongly enough to please urge Aging and Disability Services Chair Newcomb and Speaker Budish to schedule such a hearing. For the sake of those who have the most to lose -- the very necessities of life -- those bonuses must be STOPPED until times are better for everyone who is being hurt by the downturn in the economy.

Thank you.

Sincerely,
Katherine B. Bracy, STRS retiree
Columbus, OH

A similar letter is being sent to Speaker of the House Armond Budish.