RH Jones' speech to STRS Board, June 18, 2009
OH STRS, 06/18/09, board meeting speech -- respectfully submitted
I am a retired teacher, Robert Hudson Jones.
Until recently, in the long history of our STRS, there had never been a "rollback" in our promised legislated benefits. In part, retired educator HC/Rx has been "rolled back" and there is now the threat of a "rollback", in part, of the 3% COLA.
Indeed, cutting grandfathered retiree benefits cannot be a legal solution to pension solvency. Simply put, Ohio cannot override United States Constitutional law; and here is why: The Bill of Rights, as interpreted by West's Encyclopedia of American Law 2008, states: "The term grandfather clause, in its current application, refers to a legislative provision that permits an exemption based upon a preexisting condition. For example, through the application of grandfather clauses, certain prerogatives are extended to those regularly engaged in a particular profession, occupation, or business that is regulated by statute or ordinance." Ladies and gentlemen, a reasonable person could conclude that this can apply to the STRS retired educator benefits.
Dr. Martin Luther King once said: "Injustice anywhere is a threat to justice everywhere." Taking away grandfathered STRS benefits is an injustice. There are many litigating organizations that would be happy to take on politicians and government officials of Ohio who would foolishly ignore the Bill of Rights. The court award in such a case could be devastating.
As a result of any future court-fought awards against the State of Ohio, as well as the STRS, its board members and employees, one can conclude, therefore, any "cost savings" would be "cost prohibitive." It is best for everyone if the COLA "rollbacks" are not a consideration, and the original, humane, retiree HC/Rx is reinstated in full.
Thank you for the opportunity to address this board. Please see the attached questions [immediately below].
1. Especially in view of hyperinflation of HC/Rx costs, retired educators cannot shoulder any of the "solutions" to the STRS pension solvency problem. Therefore, will the STRS staff: A. Increase the active member contribution rate? B. Increase the active contributor minimum retirement age? C. Elilminate the 88% enhancement, and D. Change the calculation of the average salaries to 5 years instead of 3 years?
2. Since the STRS board has expressed support for phasing in needed changes over 3-5 years, this in essence creates grandfathering for current active educators who retire before the effective date of upcoming changes. Therefore, will current retirees be grandfathered with their COLAs like active educators will be grandfathered to get their enhancements they want when they retire?
3. Early on, last year, Dennis Leone repeatedly said that "all is fine" statements needed to stop. Why did not the STRS cease communications last September through January, then saying in February on that they indeed are not secure, knowing full well that our pension was not secure?
4. Why did not the staff step up and support Dennis Leone in December when he pushed for suspension of the bonuses and the establishment of a $65 billion threshold for future bonus potential? At that point the STRS had dropped $15 billion in assets in the previous 10 months.
5. Also last December, Dennis Leone made a motion to institute a wage freeze for the STRS staff. Why then did the staff immediately say NO?
6. The board officially suspended the bonuses for the last 5 months of the current fiscal year (2009). Is it not true that Dennis Leone made a motion to NOT pay any bonuses of the current fiscal year and the motion died due to a lack of a second? Why did not the staff recommend that bonuses NOT be paid for the first 7 months of the current fiscal year? Is it not true that the board policy permits the board to modify or terminate the bonus plan AT ANY TIME, FOR ANY REASON?
7. The STRS, after losing nearly 40% of everything it has in the past 19 months ($30 billion) cannot act like nothing has changed. A staff reduction has not been made. A wages and hiring freeze was finally approved; however, cuts were made in financially troubled businesses and school districts; why no cuts in STRS staff?
8. If retired educators have to pay more for health insurance premiums while the subsidies are decreased and the deductibles increased, will similar changes be made on the staff of our STRS?
9. Is it true that two months ago a motion for a moratorium on board member out-of-state travel was made and the motion incredulously failed?
I am a retired teacher, Robert Hudson Jones.
Until recently, in the long history of our STRS, there had never been a "rollback" in our promised legislated benefits. In part, retired educator HC/Rx has been "rolled back" and there is now the threat of a "rollback", in part, of the 3% COLA.
Indeed, cutting grandfathered retiree benefits cannot be a legal solution to pension solvency. Simply put, Ohio cannot override United States Constitutional law; and here is why: The Bill of Rights, as interpreted by West's Encyclopedia of American Law 2008, states: "The term grandfather clause, in its current application, refers to a legislative provision that permits an exemption based upon a preexisting condition. For example, through the application of grandfather clauses, certain prerogatives are extended to those regularly engaged in a particular profession, occupation, or business that is regulated by statute or ordinance." Ladies and gentlemen, a reasonable person could conclude that this can apply to the STRS retired educator benefits.
Dr. Martin Luther King once said: "Injustice anywhere is a threat to justice everywhere." Taking away grandfathered STRS benefits is an injustice. There are many litigating organizations that would be happy to take on politicians and government officials of Ohio who would foolishly ignore the Bill of Rights. The court award in such a case could be devastating.
As a result of any future court-fought awards against the State of Ohio, as well as the STRS, its board members and employees, one can conclude, therefore, any "cost savings" would be "cost prohibitive." It is best for everyone if the COLA "rollbacks" are not a consideration, and the original, humane, retiree HC/Rx is reinstated in full.
Thank you for the opportunity to address this board. Please see the attached questions [immediately below].
1. Especially in view of hyperinflation of HC/Rx costs, retired educators cannot shoulder any of the "solutions" to the STRS pension solvency problem. Therefore, will the STRS staff: A. Increase the active member contribution rate? B. Increase the active contributor minimum retirement age? C. Elilminate the 88% enhancement, and D. Change the calculation of the average salaries to 5 years instead of 3 years?
2. Since the STRS board has expressed support for phasing in needed changes over 3-5 years, this in essence creates grandfathering for current active educators who retire before the effective date of upcoming changes. Therefore, will current retirees be grandfathered with their COLAs like active educators will be grandfathered to get their enhancements they want when they retire?
3. Early on, last year, Dennis Leone repeatedly said that "all is fine" statements needed to stop. Why did not the STRS cease communications last September through January, then saying in February on that they indeed are not secure, knowing full well that our pension was not secure?
4. Why did not the staff step up and support Dennis Leone in December when he pushed for suspension of the bonuses and the establishment of a $65 billion threshold for future bonus potential? At that point the STRS had dropped $15 billion in assets in the previous 10 months.
5. Also last December, Dennis Leone made a motion to institute a wage freeze for the STRS staff. Why then did the staff immediately say NO?
6. The board officially suspended the bonuses for the last 5 months of the current fiscal year (2009). Is it not true that Dennis Leone made a motion to NOT pay any bonuses of the current fiscal year and the motion died due to a lack of a second? Why did not the staff recommend that bonuses NOT be paid for the first 7 months of the current fiscal year? Is it not true that the board policy permits the board to modify or terminate the bonus plan AT ANY TIME, FOR ANY REASON?
7. The STRS, after losing nearly 40% of everything it has in the past 19 months ($30 billion) cannot act like nothing has changed. A staff reduction has not been made. A wages and hiring freeze was finally approved; however, cuts were made in financially troubled businesses and school districts; why no cuts in STRS staff?
8. If retired educators have to pay more for health insurance premiums while the subsidies are decreased and the deductibles increased, will similar changes be made on the staff of our STRS?
9. Is it true that two months ago a motion for a moratorium on board member out-of-state travel was made and the motion incredulously failed?
posted by Kathie Bracy at 10:04 PM
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