Advice from Molly: Get involved

From Molly Janczyk, November 11, 2009
Subject: Attend STRS Meeting for its Investment Report:Thur. Nov 19 and Fri. Nov 20

STRS Meeting: Thurs and Fri: Nov 19 and 20:

Read the small print below [click here]. The Investment Dept is reporting to the Board on the bulk of Thurs. This is a chance to hear details AND approach Steve Mitchell during breaks at this meeting. You simply walk up to him to ask questions about your concerns. On Fri. long term fiduciary and financial constituency is planned.

Handouts are always available during these meetings. Often, overheads accompany these handouts. The Board typically asks questions of the Investment Dept as well directly to Mitchell or staff.

This is a perfect time to attend the STRS Meeting. You can also sign up to speak to the Board for 3 min. at Public Speak, 1 PM on Thurs.

You can order tapes of the meetings through STRS to hear every word presented but without the handouts for presentation. I imagine you could order those handouts, not sure if they mail them.

I get minutes of monthly meetings with points summarized but not in depth.

Get involved, go to meetings, approach STRS Investment Staff (they are not scary -- I have done so many times), and any STRS Board member, like the Investment Expert Appointees (Craig Brooks and Regina Burch), Exec. Direc., you like. Some of us have done so for years. It is easy and they are receptive.

The Health Care Dept is there and Greg Nickell and Sandy Knoesel are more than receptive to being asked questions. If you have someone in mind with particular needs they will take names and look into concerns.

THIS IS THE WAY TO GET TO SPEAK TO STRS STAFF AND GET DIRECT FEEDBACK vs. emails. Also, calling them is effective. IF they get to know you and you are respectful, THEY DO respond. As you have often seen, I have sent responses from them to you.

We are ALL busy but if you or your group is concerned and wants answers, this is the best way to proceed. You can also schedule meetings with staff. I have done this as have others and have never been turned down. CORE used to do roundtable question and answer meetings regularly with the Investment and Health Care staffs.

Anyone can ask for a sit down. Unending emails tend to lose their effect.

It takes time, effort and advance preparation to do these things, but it is a more satisfying result. Not necessarily by what you want to hear but by hearing more in depth the ins and outs of the departments' planning and reasoning. You can leave presentations for consideration just by going to the STRS Board meetings by passing them out to staff and STRS Board meetings whether you speak or not.

IF you have suggestions, be sure they apply to large pension system investments and apply to continual need for pay outs while earning income. Those needs are not the basic investment needs. We all think we understand investments but be prepared with duty to both current and future retirees for paying out short term and long term promised pensions. Do remember that STRS pays out $1.5 Million daily for health care along with current pensions while trying to sustain returns for long term payouts. You presentation must be detailed and prepared for the needs of STRS. All pension systems rely on risk as stated in research. That is their weakness as they have greater needs for constant payouts while ensuring monies for future retirees is in place. That is why they must realize a certain return. DO I AGREE WITH ALL (NO) THIS AND WISH IT DIFFERENT (YES), but that seems the reality. I think it is important for all to deeply research many pension systems and how they operate. Not one who seems good today but the entire histories of operations and compare them to STRS. Get into the details and use large system investment minds to rework those details. You cannot compare personal returns or group returns that do not have the same needs for payouts as pension systems. Also, we have long relied too heavily on the stock market (unfortunately) and now have to deal with that fact making overnight drastic changes unlikely or untenable.

We cannot just throw out that STRS relies too heavily on the market, needs less risk, and show losses. That bridge has burned. Too little too late. We need in depth and promising solutions. We need sit downs or presentations to the Board for investments that show promise of meeting STRS needs.

GO TO MEETINGS! TALK WITH STAFF AND BOARD MEMBERS! GIVE THEM YOUR PRESENTATION FOR CONSIDERATION! TAKE THEIR PHONE NUMBERS AND TALK TO THEM ABOUT THOSE PROPOSALS! This has been done before by several among us with in depth graphs and numbers presented. However, this time around, STRS did go outside its usual consultants and conferred with other investment consultants as well. The plan is in place. I doubt that anyone out there is going to change it now. BUT, presenting learned proposals for future payouts and earnings in numbers which STRS must deal with, can influence future decisions IF they are indeed within the parameters of what large pension systems need to do .

The choice is yours. Continual emails which are not having an effect or go to meetings and speak with the Staff and Board members yourselves! Give presentations directly to them! Ask for answers to all points. Ask them directly on the spot your most important questions. 'Tell me WHY, this or that will not work.' They are actually VERY approachable! Mitchell, Slater, Knoesel, Nickell, Brooks. You walk up, shake their hands, Mitchell or the rest will smile and be interactive. If they did this with me, they will do this with anyone..........except perhaps, a very few who are continually very hostile in their approach. I have heard directly of 2 names only that invoke that response which is why they do not get answers, I guess.

Molly J.