Ralph Roshong's speech to STRS Board, September 17, 2009

I commend the Board and Staff on the completing of a set of recommendations to the ORSC along with Mr. Nehf’s presentation. It was a difficult task and not favored by all. I personally do not feel the elements were recommended for implementation soon enough for the depth of our crisis and I feel the public is certainly NOT responsible to pay increased rates to solve OUR problem. We will have to wait and see what the ORSC proposes to the full Legislature. The STRS Boards, over the last 11 years I have been attending meetings, have been extremely short sighted in their actions and failed miserably to look at the long range strategic goals and objectives of our pension fund. Their interest seemed to focus on how retirement benefits could be increased as much as possible for themselves. Our funding crisis is “real and severe” as reiterated by several consultants and Bob Slater’s financial reviews for the last 6 months.

The basic compensation packages for our investment staff are very generous. Bonuses for their “performance” should be put to bed until the so called trigger is reached and then look forward and design an appropriate bonus program, NOT backward to pay bonuses for questionable results. Bonus programs in the financial worlds of both Europe and the U.S. are being considered as a culture of greed.

The granting of part-time credit must be addressed. An educator should have to work a whole day for a day’s credit, not a couple hours, and 180 days for a year’s credit, not 120 days. Our System has been giving away credit without a commensurate payment into the Fund.

The Board must realize our STRS Staff’s benefits must be reviewed as they should participate in the same type of belt tightening that retirees are going through. It is certainly not appropriate for Staff to be recommending all these reductions for retirees and not share fairly in the pain themselves with similar reductions. I am aware that this is not a pension saving idea, but a moral one.

I would think that there is a rather large portion of space in our STRS building that could be considered for leasing or renting. I feel the Board should direct staff to review our facility’s capacities and determine if we could lease space to organizations such as SERS, PERS, Police and Fire, State Highway Patrol pension funds, ORSC, or other similar quasi governmental groups. It would certainly be a help in paying the utilities and upkeep.

Do what is right, it will satisfy some and astonish the rest! Harry Truman via Mark Twain