Molly Janczyk: Conversation with Aristotle Hutras

From Molly Janczyk, November 12, 2009
Subject: Aristotle Hutras: Exec. Direc. ORSC: Pensions, Changing ORSC, Investments

I called Aristotle Hutras yesterday on the same question below: Aristotle is happy to take calls anytime from anyone: "We are here to serve." He was gracious and very openly communicative. He has an Education Degree but has served in Public Policy for his career after starting there as a page as a young man. I am copying Aristotle on this email for accuracy:

Direct number: 228-3574 Direct email: ahutras@ameritech.net

1. Aristotle : Can ORC be changed to reduce current pensions?

Aristotle feels this would be very difficult to reduce or take away pensions retroactively and would be seriously challenged opening the door for lawsuits due to Federal Trust and existing laws.

Aristotle IS checking further on this to be certain. He will get back to me on this question.

2. Should STRS go bankrupt (which no one expects) who pays us our pensions? The state would have a hard time not standing behind that obligation as it was law when the pensions were issued but he is checking on this for a clear answer.

On this issue:

STRS is strong as is OPERS with its investments and investment staff. Those staff members can easily go other places for jobs. I know there is a lot of talk about bonuses but they have done a remarkable job and this is a very difficult climate. Investment geniuses have lost money. For ex., Warren Buffet. The whole country has lost money.

The reason some plans have become unsustainable is because they used money for other things (discretionary payouts) vs. keeping the money in the funds for pensions. This is why STRS is proposing changes as without change, STRS will have to stop paying though that would be 10-20 years down the road. But, you don't want to wait for that to happen. Changes need to be made now to grow funds and meet mandatory 30 yr funding.

He believes in educating people for responsible decisions. Info should be factual. Giving misinformation not factual is not responsible and is a disservice to our readers and listeners. We want folks to have facts at hand or bad decisions and poor statements are made. If this happens with lawmakers, then they can't be responsible for decisions based on bad info. The legislators are seeking solid answers.

He was happy that we are seeking facts and opening communications for good dialogue.

Thank you, Aristotle for a most pleasant conversation and for seeking this definitive answers for concerned retirees.

Molly Janczyk
STRS Retiree