Debbie Roush on bonuses

Debbie Roush to John Curry, September 26, 2009
Subject: Note to Swartenberg: STRS Differed Bonuses

John,

I sent the note below to Steve Swartenberg; I think I read, at one time, that some employees in OPERS receive employer contributions of 17%. But even if the rate is 14%, that's still a large contribution coming from our STRS fund. Bonuses would be considered income and receive an employer (STRS) contribution unless the investment staff agreed it was miscellaneous income....received a 1099, and paid their own $$ toward retirement.....NOT! ; )

Does anyone know the rate paid for the investment staff.....

I received a card today inviting area retirees under 65 to attend the healthcare meeting in Athens...why??? What could they possibly tell me? We know what we're getting, how much it will cost in 2010, etc...more wasted money...travel expenses, paper, postage, renting OU Inn, meals, passing out junk pens, bottled water with STRS logo, and other "do-dads".

At my last RTA meeting, I told the membership I wouldn't believe a thing that STRS puts in the newsletter...there's still so much that I just can't understand about the deceitfulness of not just this STRS board, but of the previous one also; their corruption and the later punishments (not nearly strong enough) should have sent a message to this STRS board that their entitlement attitude, their flagrant dishonesty with our group, their wasteful spending, and how about not taking a risk with retiree money...was not going to be tolerated....and where did I read that investments were to be prudent. Well, they are still doing exactly as in the past, and are our hands tied?

The sad thing about it is they know they can make their own rules and nothing will be done. What are we able to do about it...nothing unless we change the law... Surely, the membership has to know that the board is not really working for them. Sociopathic tendencies...feel no emotional connections to others and have zero regard for the rules and regulations of society; they know the rules, but they just choose to break them; they are egocentric, callous and as manipulative as any criminal; their intelligence allows them to construct a facade of normalcy to get what they want; corporate sociopaths have the ability to present themselves as the dream employee...sound like anyone we know??

OK, too much anger on my part, but think about it...these people learned early how to take advantage of others and have passed these terrible attributes on to their families...a vicious circle. We've all had a few students with these characteristics. Debbie

From Debbie Roush, September 20, 2009
Subject: STRS Differed Bonuses

Steve Wartenberg,

After STRS has voted to award $3.4 million in bonuses to the investment associates, I wonder if anyone has questioned how much STRS will have to pay to the OPERS retirement fund for these employees. I believe that some OPERS rate is 17% vs 14% teacher contributions to STRS from school systems. If so, when the STRS investment staff receives $100,000++ in salary, that sum must receive a 17% contribution to OPERS. This is worth checking out...so if the employee receives $100,000 in salary and $100,000 in bonus then, STRS must pay 17% on $200.000.

At one time it was mentioned that in order to raise the contribution rate from 14% to 16.5% for a teacher, the Legislature would have to vote on it and pass it as law. But there seems to be no problem for STRS Board to suggest to the legislature to cut the 3% COLA. This would also call for a vote and passage to change the ORC which states 3%. Did anyone ever think about the salary difference in the state?

Teachers in southeastern Ohio do not and have never made the salary that other sections of the state has made. The starting salary today in Southern Local School District is about $21,000. Can the retiree in this district afford to lose the COLA? How about the cost of health care...it is the same if the retiree makes $30,000 or $60,000. I, personally, make around $29,340 from retirement after taxes, and many teachers in this area make less, I am sure. This is based on 32 years...with a master's degree ++. My COLA is $75.15, and this amount does not change from year to year. STRS has wasted more than this just trying to convince us that decreasing this amount will save our benefits. The $100,000 @ 17% can't compare to my $75.15.

How about their health care that STRS provides to them and their families? How about the 37.5 hour work week that is paid at 40 hours? How about the reply from the STRS Board, "in order to keep a good investment staff"; I am tired of that lame excuse...Wall Street is full of unemployed investment staff that could do the same job...and probably with just the same conscience.

I think we need to change the ORC that states how and who will make up the STRS Board. The composition should be retired teachers and only two active teacher seats...instead of the OEA-filled seats of active teachers and only 2 retired teacher seats. Who would better look out for our retirement system than the retiree?

I suggested once to an ORTA VP that STRS sell the building, move to southeastern Ohio into one of our old school buildings without AC, hire people from our population who has never received $100,000 and try asking for money to spend foolishly......

Thank you,
Debbie Roush

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Steve Wartenberg's reply:

Thanks … whether STRS has to pay the 14% to OPERS on the bonuses is an interesting question – I will check it out.

Steve Wartenberg
Business reporter, Columbus Dispatch
34 S. Third St.
Columbus, OH 43215
614-461-5518
614-461-5107 (fax)
swartenberg@dispatch.com