Jim Stoll to Dispatch reporter Steve Wartenberg re: STRS Board Policy

From Jim Stoll, September 11, 2009
Subject: RE: STRS Board Policies

Steve,

Thanks again for your interest in the 7/12 Bonus issue for STRS Investment Staff.

The two applicable provisions in the STRS Board Policies which I believe puts the Board in Breach of their Fiduciary duty if they approve these Bonuses and allow their own employees to "PROFIT" while the fund has had astronomical losses and they are cutting benefits to both Active and Retired employees are the following.

1) On pg. 33 of STRS Board Policy it states, "The PBI program may be "interpreted, amended, rescinded and or Terminated at anytime by the Board."

2) On page 39 it states, "Board members shall discharge their duties SOLELY in the interest of participants and beneficiaries for the exclusive purpose of providing benefits to participants and beneficiaries."

Again, I can't see anyway they can recommend cutting benefits (drastically) to those who their Policies say they exist for - yet in turn allow their employees to PROFIT with astronomical bonuses at a time when their fund has lost 30% of its total assets.

You can find these Board Policies by going to STRS website click on Retirement Board then on the right of the screen click on Board Policy. Go to pages referenced above. Please call if I can assist further. Two Ohio State Representatives, Matt Huffman and Danny Bubp, introduced legislation to stop future bonuses and their opinions prior to the vote would be noteworthy.

Jim Stoll
513-615-4690

From Steve Wartenberg, September 10, 2009
Subject: RE: STRS Recommendations to ORSC and Compensation/Bonuses of their Investment Staff

James:

Thanks for the info and heads up about the upcoming meeting.

Just so I’m clear, the numbers on the left are base salaries – and on the right are the bonuses that will be voted on, right? [See September 8 ten part posting "Jim Stoll to Aristotle Hutras: STRS Recommendations to ORSC and Compensation/Bonuses of their Investment Staff" http://kathiebracy.blogspot.com/2009/09/jim-stoll-to-aristotle-hutras-strs.html]

Steve

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