RH Jones: Robin Hood thinking not always good
From RH Jones, October 25, 2009
Subject: Robin Hood thinking not always good
To all:
Here in Ohio (OH) geographic income thresholds are uniquely different. So, in the consideration of the redistribution of the STRS COLA, as in Robin Hood taking from the rich to give to the poor, is not always a valid goal. Why not, you may ask? The answer is that each county the purchasing power of the dollar varies. For instance, in my Summit County a home is more expensive to purchase than just south of me in Stark County; but, to the west of me, in Median County, homes are more expensive to purchase than here. This is true with many other costs and purchases even including Health Care HC). In other words the dollar goes further, or not so far, depending on where you may live. Therefore, if the retiree in Medina gets cut to add to my COLA here in Summit County, it is not equitable, nor fair; and I would end up living better than he or she. Conversely, the retiree in Stark County would be better off than me here in Summit County.
Note: The federal and state governments have Geographic Means Test Thresholds published that support my contention. They include geographic scales for median income for one individual, spouses, and other dependents.
To keep the OH STRS 3% simple COLA simple, it is best just to leave it as is. The 3% COLA, until the supplemental (13th check) can be again offered, was, and will still be, very fairly distributed -- or even better yet, I might add, is a legislated compounded COLA based on our monthly pension check.
And, by the way, is it not strange that the STRS officials and board are declaring the our STRS will be nearly amortized – by their recent recommendations to the ORSC for legislated changes that would extend STRS funding until it will almost reach its 30-yr. funding goal – when legally a 13th check can only be issued when this 30-yr. goal is reached. A coincidence, I wonder?
The above are some thoughts that could be considered.
Robert Hudson Jones, a retired teacher STRS member, & proud to be a CORE member
Subject: Robin Hood thinking not always good
To all:
Here in Ohio (OH) geographic income thresholds are uniquely different. So, in the consideration of the redistribution of the STRS COLA, as in Robin Hood taking from the rich to give to the poor, is not always a valid goal. Why not, you may ask? The answer is that each county the purchasing power of the dollar varies. For instance, in my Summit County a home is more expensive to purchase than just south of me in Stark County; but, to the west of me, in Median County, homes are more expensive to purchase than here. This is true with many other costs and purchases even including Health Care HC). In other words the dollar goes further, or not so far, depending on where you may live. Therefore, if the retiree in Medina gets cut to add to my COLA here in Summit County, it is not equitable, nor fair; and I would end up living better than he or she. Conversely, the retiree in Stark County would be better off than me here in Summit County.
Note: The federal and state governments have Geographic Means Test Thresholds published that support my contention. They include geographic scales for median income for one individual, spouses, and other dependents.
To keep the OH STRS 3% simple COLA simple, it is best just to leave it as is. The 3% COLA, until the supplemental (13th check) can be again offered, was, and will still be, very fairly distributed -- or even better yet, I might add, is a legislated compounded COLA based on our monthly pension check.
And, by the way, is it not strange that the STRS officials and board are declaring the our STRS will be nearly amortized – by their recent recommendations to the ORSC for legislated changes that would extend STRS funding until it will almost reach its 30-yr. funding goal – when legally a 13th check can only be issued when this 30-yr. goal is reached. A coincidence, I wonder?
The above are some thoughts that could be considered.
Robert Hudson Jones, a retired teacher STRS member, & proud to be a CORE member
posted by Kathie Bracy at 1:54 PM
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