Mario Iacone: BONUS IMPACT ON THIRTY YEAR FUNDING PERIOD

From Mario Iacone, September 20, 2009

The STRS PBI PROGRAM may cost more than ONE BILLION DOLLARS over the NEXT 30 YEARS!

RETIREMENT BENEFIT CUTS submitted to ORSC by STRS may save over SEVEN BILLION DOLLARS!

The BONUS PROGRAM may consume up to 15% of the savings of the RETIREMENT BENEFIT CUTS!

STRS, the ORSC, and the LEGISLATURE must include future ELIMINATION OF PBI as part of any changes to make the STRS Fund solvent.

NOTE: The above PBI estimate is based on paying out an average of 10 million per year in bonuses over the next thirty years. The return is based on STRS actuarial return of 8%.

I would sincerely hope that STRS can objectively prove the above figures incorrect.

Shown below is a year by year calculation of the PBI estimate.

(Click images to enlarge.)