Two Kentucky STRS retirees: Letter to Board

From Debbie Reinhart and Sharyn Wiehe, July 8, 2009

To All Retirement Board Members:

As retired Ohio school educators, we are writing to voice our concerns regarding long- term contingency planning that pertains to the STRS Ohio investment funds. Our trepidations focus on the boards’ exploration into cutting any benefits that retirees currently have including the COLA.

Ohio retired educators are already at a deficit because of legislative action prohibiting us from contributing to Social Security. Additionally, Ohio educators are adversely affected by the windfall and offset penalties of Social Security. Realize that by not being able to collect our spouses Social Security should he/she pre-decease us we lose that portion of our income immediately. This compounded with the proposed COLA reduction has a double impact on Ohio retired educators.

In addition we have the following recommendations:

• Final average salary based on 5 years

• Mandatory retirement after 30 years (teachers may re-enter the work force, however those salaries would not figure into retirement benefits)

• A retirement formula that would provide 2.2% up to 30 years

• No more 38 years and 88%

• Increase member/employer contributions

• Generate additional funds by selling STRS art work

• Freeze and or reduce salaries and/or bonuses for STRS employees (educators do not receive bonuses and many have had their wages frozen)

• Shut down day care services (unless operating at a profit and again no educator was afforded this luxury in their schools)

• Shut down STRS cafeteria (unless operating at a profit)

• At a minimum keep COLA at 3%
We strongly urge you to consider our recommendations. In today’s economic environment, retirees are being impacted more than any other socio-economic group. It is unconscionable for the board to consider let alone recommend taking any benefits away from those educators currently retired.

We respectfully request a response in writing to our concerns.

Debbie Reinhart and Sharyn Wiehe
Covington, KY