Molly Janczyk: Letter to Senators Brown and Voinovich

From Molly Janczyk, November 9, 2009
Subject: Senators Brown and Voinovich

Dear Senators,

I am an STRS Retiree. I am certain you know of the devastation current retirees have faced in recent years having the task of saving health care for STRS. Our premiums have increased up to 800% and in 2010 spousal premiums will be a $924 as we pay full subsidy. Our premiums will be $231 totaling $1,155 just for premiums. When I retired in 1999, my subsidy was 0 and my spouse was $33. We receive only simple COLAS based on our first year of retirement and so have no hope of covering such untenable increases. Any of us who are able have had to return to work to pay for health care while others have cut or eliminated meds, treatments and Dr. visits, sold homes, cars, and live a most basic life.

Recently, STRS has spiraled down again having relied so heavily on the stock market. They insist on higher risk investments to earn and reestablish earnings to make up for these declines. Former OFT Pres. Tom Mooney stated in late 2002 and early 2003 that STRS had relied to heavily on the market, never established a revenue for health care funding and now the burden of saving health care was heaped onto the backs of retirees. After the decline in the early 2000's, STRS relied heavily on risk investments to return us to stability. While it worked, it was wonderful. Then another crash.

Having reviewed their investment policies after this recent deep recession, they still insist they must rely on risk investments though they have modified some parts for more risk management. Senators, we simple minded investors know the market goes up and then down. We fear further declines without firm safeguards in place to never return to this kind of loss. We are not investment experts but there are investment experts on the STRS Board and they agree with STRS and consultants. The same consultants who gave advice resulting in this mess. Problem: Now, if STRS does not get 8% returns, they cannot meet their obligations as now the unfunded liability in at infinity.