A reminder from Lloyd Knudsen to Mike Nehf and STRS Board: WE are the reason the system was created in the first place -- and STILL exists today

From Lloyd Knudsen, July 29, 2009
Subject: STRS COLA discussion

To Mr. Nehf and the STRS Board members:

As President of the Medina County Retired Teacher's Association (MCRTA), our Executive Committee has asked me to write to you on behalf of our 300+ members to voice our concerns with your long-term contingency planning.

Retirees can NOT AFFORD any more cuts from STRS. Please do not cut our annual, simple 3% COLA! Retiree cuts began when we lost our 13th check. For those of us retired a long time, that was a large financial annual loss. Then STRS eliminated the subsidy for spouses under our insurance coverage. That alone was a huge financial hit for many retired couples. Then, annually STRS increases our retiree insurance premiums while decreasing our insurance coverages. And now, you want to reduce or eliminate our pension COLA.

Many retirees are really hurting financially. Maybe retirees who are getting the 88% payout are living a comfortable life style but they are in the vast minority. It's sad to say, but most retirees have few, if any real financial options at this point in their life. Unless you consider working at McDonald's or Wal-Mart a viable financial option.

I urge this board to put aside those two popular misconceptions that retirees "are just living too long" and that they are STRS' "single biggest expense." Let me remind you--STRS was built by and made successful by active teachers who grew up to become retired teachers. WE ARE THE REASON THIS SYSTEM WAS CREATED AND STILL EXISTS TODAY! Please do not forget that in your deliberations.

Respectfully submitted,
Lloyd Knudsen
MCRTA President
Proud to be a 30-year Ohio retired teacher