Mario Iacone: STRS - COST REDUCTIONS - COLA

From Mario Iacone, June 16, 2009

It is important to make STRS operation leaner and meaner. In the tough economic times of the forseable future, every dollar is important. And yes, this will result in reduction of services to STRS members. We might have to wait longer on the phone when we have an issue, fewer regional retiree seminars, etc......

I believe 20 million yearly can be saved in the operation of STRS.

According to Mr. Slater, current yearly COLA costs are 64 million,

20 million saved would amount to almost 1% of current retiree COLA of 3% and would lessen COLA cuts substantially for a number of years to come.

STRS members are not asking to punish STRS staff, but to share and help fix the problem.