RH Jones re: Protecting our Defined Benefit Plan

From RH Jones, September 14, 2009
Subject: Re: Protecting our Defined Benefit Plan of our OH STRS

John & all:

As I set here writing on my computer, rather than being able to enjoy my retirement this beautiful time of year hiking through the numerous parks in OH, I have to fight try to protect my OH STRS pension from the political wolves who wish to destroy it and then get their hands on our money.

Probably the most intelligent report that I have read recently was in: The AUAR Newsletter "The Association of the University of Akron Retirees", Vol. VI, Issue II, Fall 2009. They have a membership of 300. I forwarded it to most of you as an "attach" on 09/11/09. I hope you all read it, especially page 2, "The Assault Has Begun - Robert Gandee AUAR President Elect and Past OCHER President, The Conference Report". Gandee's report makes me proud to be an Akron U graduate!

Here are important paragraphs: "Beth Almeida, Executive Director of the National Institute of Retirement Study (NIRS), was the second key-note speakers. She shared the NIRS research report, 'A Better Bang for the Buck: The Economic Efficiencies of Defined Benefit Pension Plans.' contrasting a Defined Benefits Plan (DBP) and the Defined Contributions Plan (DCP). Because of the efficiencies embedded in the DBP, the DBP is able to achieve essentially the same level of benefits for the retiree in retirement at about half the cost compared to the DCP. This cost reduction results from three factors:

1. DBP are able to pool the longevity risk;
2. DBP maintain an optimally diversified portfolio;
3. DBP permit the professional management of funds.

In her June 1, 2009, Wall Street Journal's editorial suggestion that California could deal with its budget problems by moving their public employee from a Defined-Benefits Pension into Defined-Contribution individual retirement accounts. 'Change is coming.' was the call of Artis Hutras, Executive director Ohio Retirement Study Group (ORSG) www.orsg.org. [Note: the previous sentence should read: "...was the call of Aristotle (or 'Aris,' as he commonly goes by) Hutras, Executive Director of the Ohio Retirement Study Council (ORSC) www.orsc.org." KBB]

One of the major dangers in a time of change is the intrusion and motivation of those who are initiating change. Are they initiating change to avail themselves of the billions of dollars in pension funds at the determinate of the pensioners? the major issue is who is controlling the change. Hutras was adamant that the Board and Pensioners be willing to take responsibility among Retirement System staff and its membership for widespread disputation invites political intrusion.' ...'Politics is a contact sport! You must stay informed and stay in contact with your State Representative, State Senator and Governor. You may order a quad-folded Ohio Legislative and Government Directory listing the Senators and Representatives from the following:

Vincent Direct, LLC
3560 Milliken Court
Columbus, OH 43228
Phone: 614.771.5449
e-mail: Ty Vincent@vincentdirect.com

(END QUOTE)

I hope you read the quote above very carefully. This is the key to protecting our Defined Benefit Plan at our OH STRS.

Respectfully submitted in my learned opinion,
RHJones, a retired teacher OH STRS member