Al Rhonemus: Report on December 7 Brown County meeting

Al Rhonemus to Duke Snider, December 8, 2009
Subject: About December 7th Meeting

Duke:

Although I am not able to hear really good because of age and ear problems, here are a few highlights I observed yesterday with CEO Mike Nehf.

Very congenial meeting with representatives in attendance from six counties (Adam, Brown, Clermont, Highland, Hamilton and Warren) plus two House of Representative members who represent the counties in attendance.

Emphasis seemed to be to get the Legislature on board to increase funding from both active teachers and local school districts to support the down turn in the economy which will indirectly affect our retirement and health care benefits in the future if not passed by the legislature. (The state representatives indicated it will be difficult to get any increase in contributions from taxation monies because of the school district budgets are already “strapped” by economy problems plus 2010 every state representative and half of the senators will be up for election and they will hesitate to increase funding for anything during an election year.)

Personal note: some school officials in our area want to see that the active teachers pay as much percentage into the STRS fund as the school districts do. We seemed to go away from the meeting stating if those who will be retiring down the line (say 10-15 years away) may suffer much more than those who are presently retired.

Future retirement amounts and health care depend upon passage of this funding. However, no bill has been presented yet to the legislature because all five public retirement systems will have to get a combined bill however noting then the total bill will be subdivided according to the retirement system (STRS, PERS, etc.) The down side to the meeting was everyone would feel the pain of increased funding by active teachers, retirees or cut in cost of living from 3% to 2%.

The subject as to why many teachers are disgruntled asking if the STRS Board and STRS staff has made any cuts. Mr. Nehf assured us that several ways are being cut. He said they have made approximately 11% cut in cost for the staff and board. One impressive statement “I have to sign every voucher, not only for travel and other out of town expenses.” So much more in house meetings rather than out of state travel, etc. He did mention that a few of the investment staff had to travel because of the investment far beyond our American borders.

The bonus situation was discussed briefly and explained that no bonuses will be paid unless an increase income beyond a certain bench mark and the board would have to openly approve any bonuses.

All in all it was a good meeting and those in charge tried to answer the questions whether it was for the good of all retirees or some on an individual basis. Mr. Nepf says STRS has $60 billion in assets.

Al Rhonemus