Donna Seaman's speech to STRS Board August 20, 2009

Hello, my name is Donna Seaman, a 2002 retiree. My views are my own and do not reflect the views of any organization.

I was unable to attend the June STRS board meeting and participate in the tributes and notes of gratitude to outgoing board member Dr. Dennis Leone. Most of what I say today includes my sincere and heartfelt thanks and appreciation to Dr. Leone for his efforts while on the STRS board.

Largely because of Dr. Leone's urging, the STRS newsletters now reflect a far more realistic reporting of the sad state of STRS investments and value. August's newsletter states: "The reduced level of investment assets will result in a funding shortfall." Realistic, yes, but far more accurate than the previous newsletters which were condescending and painted a picture that everything was ok!

August's newsletter also reports: "STRS operating budget for this year is the lowest operating budget in four years."

I say far too little and far too late. STRS's operating budget should be and should have been drastically cut! Monday night's national news reported that 69% of cities and states, such as Chicago and California, have taken furloughs, salary cuts or layoffs. But not so for STRS. Yes a pay freeze, yes slightly increasing the work week, but also given an extra paid holiday (the day after Thanksgiving), yes a hiring freeze. But nothing like the 30% to 40% reduction in staff and operating expenses that is warranted and needed because of the 30% to 40% loss in investment value.

And the board plans to go ahead with the $3 million plus in performance based incentives for the first seven months of the 2003-09 fiscal year after Dr. Leone continued to urge the board not to do this. And your constituents have implored the board not to pay these bonuses. I remind you, your STRS individual investment employees already are paid (notice I did not say earn) as much as Ohio's governor, and some of them are paid twice as much as our governor! And this in the face of huge investment losses. And now bonuses for them? How on earth do you justify these expenditures? How can you look retirees in the face as you spend and spend? Especially as you change and reduce retirees' health insurance coverage, and plan changes in our cost-of-living adjustment, which is simply unacceptable. Now you discuss changes for active teachers as well, which will impact my daughter who has 20 plus years of experience and is making plans for retirement at 30 years of teaching.

Yet there are virtually no significant changes in STRS operating expenses which would show constituents and yes, the general public, that you are serious about shortfalls. STRS must make internal cuts as well! Dr. Leone has urged out-of-state travel cutbacks or elimination; he has urged that STRS staff pay more for their own health insurance.

I have repeatedly asked you that STRS employee health insurance benefits be the same as retirees -- no better, no less. That is only fair and justified!

Board decisions have negatively impacted my husband and me. By the way, my husband, a 1986 retiree, is one of the 800 plus that Mr. Nehf reports have STRS pensions of $30,000 or less. And he has virtually no other income! He no longer receives the 13th check and now you are planning to reduce our COLA as well. As ;I said, I was unable to attend June's board meeting. But I did request and receive an auditory transcript of the meeting.

Mr. Myers, did you really make a motion in June to stop Dr. Leone's discussion on the matter of bonus checks for fiscal year 2009? Ms. Ramser, did you second that motion? Mr. Meuser, did you also vote in favor of the motion to stop the discussion? What kind of impact do you think you are having on the board, and on constituents who listen to each and every word you say? How effective do you think you can be on this board? Do you believe you are following the stipulations in Ohio Revised Code required of an STRS board member?

I'm so grateful to have had Dr. Leone on the board these past four years, and for his continued persistence in working for retirees. I urge the new board members to continue those efforts, and existing board members to reflect on what needs to be done. And to have the courage to do it!

Thank you.