RH Jones re: Final STRS plan

From RH Jones, September 2, 2009
Subject: Fw: 090109 CORE ALERT - Final STRS Plan

To all:

We can not sit still and let the Ohio Retirement Study Council (ORSC) cut our Cost of Living Adjustment (COLA) down to 2% on 7/1/2011 already. The active-dominated STRS board has hurt those who built the OEA and OFT during our employed years. As a result of the Sept. 1 (on Monday of this week) Board voting, I am saddened by the negative votes of OEA endorsed STRS Board Member, Conni Ramser, OFT-endorsed STRS Board Member, Steve Puckett and even our CORE endorsed Retired Representative on the Board, Jim McGreevy. How can they do this to their elder brothers and sister teachers! I understand, as Dennis Leone predicted, it was a unanimous Board decision. And, please notice that they cut us in 2011 and the active teachers' first cut is not until 2015! Their "Contribution Component" is not until 2020!

Please read the brief synopsis of the Thomas Curtis e-mail to me below. We MUST contact the State Reprehensive on the ORSC. Here they are: Rep. Todd Book, Chair, Senator Kirk Schuring Vice-chair, Sen. Keith Faber, Sen Sue Morano, Rep Dan Dodd and Rep Lynn Wachtmann.

Tell them we can no longer support them and will never, EVER, vote for them any any of office, now, or in the future, if they vote yes to take our promised benefit COLA from 3% down to 2%. We will not stand for this! We have given up enough already!

Robert Hudson Jones, retired teacher STRS member

From Tom Curtis, 9/1/09
CORE ALERT

September 1, 2009
The STRS Board met today, Tuesday, September 1st in order to reach consensus on a final plan to present to the Ohio Retirement Study Council (ORSC) by the deadline of September 9th. The plan which was moved by Conni Ramser and seconded by Steve Puckett was passed unanimously. The only change from the final plan to the plan recommended on August 21st affected only the COLA. The plan follows:
CONTRIBUTION COMPONENT: Increase member and employer contributions by a total of 5% by 7/1/2020. Ultimately, members would contribute 12.5%; employers would contribute 16.5%.
FAS COMPONENT: Base final average salary (FAS) on five highest years of earnings, beginning 8/1/2015.
RETIREMENT ELIGIBILITY COMPONENT: Beginning 8/1/2015, members may retire and receive an unreduced benefit at : any age with 35 years; age 60 with 30 years; or age 65 with 5 years. Members may retire earlier with an actuarially reduced benefit at: age 55 with 30 years, or age 60 with 5 years. Members who meet age and service eligibility for service retirement as of 7/1/2015 under the current rule retain their eligibility.
BENEFIT FORMULA COMPONENT: Benefit formula is 2.2% per year for first 30 years; 2.5% per year thereafter, beginning 8/1/2015. The 35-year enhanced benefit is no longer needed to encourage teachers to work longer and is eliminated. Those who have 30 years of service; who are age 55 with 25 years of service; or who are age 60 with 5 years of service as of 7/1/ 2015 receive the greater of: (a) The benefit as of 7/1/2015 under the current formula; OR (b) The benefit upon retirement under the new formula.

COLA COMPONENT: Beginning 7/1/2011, current retirees receive an annual 2% COLA. Members retiring on July 1, 2011, or later receive a 1.5% each year.
STRSoh.org will post more details. Please be reminded that this is only a proposal to the Ohio Retirement Study Council. The ORSC will likely make the final decision as to what will actually be written into a bill that would cause the final changes to become law. That process is often lengthy and time consuming.