Debbie Roush on bonuses
Subject: Note to Swartenberg: STRS Differed Bonuses
Subject: STRS Differed Bonuses
Business reporter, Columbus Dispatch
34 S. Third St.
Columbus, OH 43215
A forum for Ohio educators, sharing thoughts regarding their health care and pension system (STRS Ohio). Researcher John Curry manages a clearinghouse of related e-mails, articles, announcements, etc. His daily mailings include many items that do not make it to this blog. Contact John (email@example.com) if you wish to be on his e-mail list. Kathie Bracy: firstname.lastname@example.org.
Comprehensive member benefits: Providing retirement planning, benefits and health care coverage to enhance the quality of life for members, andQuality service: Striving to exceed the service expectations of members, employers and associates,throughFiduciary responsibility: Safeguarding members’ financial retirement security using ethical and professional business practices, andFinancial performance: Improving funding through prudent investments and resource management,byEmpowerment of associates: Enabling associates to act through the delegation of authority and the acceptance of accountability, andOrganizational renewal: Enhancing STRS Ohio’s future by continually acquiring, sharing and implementing new knowledge.
1. Make decisions that produce the greatest possible net benefit for members.
2. Be proactive rather than reactive by anticipating and dealing with change and growth.
3. Attract, develop and retain a highly competent and motivated workforce.
4. Build an organizational culture that inspires a high level of professionalism and performance — distinguishing STRS Ohio as a workplace now and in the future.
5. Provide an open environment for associates to generate new methods or practices to achieve our vision.
6. Provide associates with authority commensurate with their responsibilities for efficiency in decision-making and leadership development.
7. Continually improve through research, development and evaluation.
|News Items & Reports|
Originally posted June 23, 2009
Correction to June Board News
The June Board News contains an article titled “Health Care Program Changes Approved for 2010.” There is a typographical error in the story. The maximum annual out-of-pocket costs for the Aetna Medicare Advantage Plan will be $1,500 per individual versus the $500 stated in the article. This $1,500 includes all copayments, the $500 deductible and coinsurance. We apologize for any confusion this may have caused and regret this error.
• No minutes to be read from the August meeting.• Treasurer (Herm Fisher) reported a total of $1338 collected to date for Dennis Leone’s parting gift. Contributions continue to come in along with membership checks. The CORE treasury total was reported.• Donna Seaman made a motion to send a card and CORE check by registered mail to Dr. Leone. Motion was 2nd by Mary Ellen Angeletti. Motion passed unanimously. Dave Parshall will take care of this action with a check presented by the treasurer.• No need for election of officers and trustees at this time.
• Dave reported on the ORSC meeting which both he and Kathie Bracy attended. Though the fashion trend was black and the seating was most uncomfortable, Dave gave Michael Nehf kudos for a strong presentation compared to those of the other 4 pension funds. STRS has formulated a detailed and complete plan.• Dave suggested that CORE’s next step should be formulating the “Talking Points” for the collaborative plan and resulting legislation to be developed by ORSC. Discussion followed Dave’s suggestion with several comments encouraging clear “Language” in describing our pension plan relative to 401K plans of the general public. We will need to carefully educate our legislators and community as well as our active and retired teachers.• Jill Fetters offered a motion to form a committee to develop these “Talking Points / Position Paper” to be used by members in work with local legislators, in the writing to newspapers, and in conversations with active and retired teachers. Motion was 2nd by Mary Ellen and passed unanimously.• Dave agreed to serve as advisor of this committee. Lou DiOrio and Carol DePaulo agreed to edit along the way. Other writing committee volunteers (so far) include Jill Fetters, Kathie Bracy, Mary Ellen Angeletti, and George Justice. Dave will invite additional CORE members to join in this process.• The next ORSC meeting is scheduled for October 14th and legislation will hopefully be introduced before the year ends. This time frame gives CORE time to work on this position paper as a committee.• Dave adjourned the meeting @ 12:30 to return to the afternoon Board session.
The STRS PBI PROGRAM may cost more than ONE BILLION DOLLARS over the NEXT 30 YEARS!
RETIREMENT BENEFIT CUTS submitted to ORSC by STRS may save over SEVEN BILLION DOLLARS!
The BONUS PROGRAM may consume up to 15% of the savings of the RETIREMENT BENEFIT CUTS!
STRS, the ORSC, and the LEGISLATURE must include future ELIMINATION OF PBI as part of any changes to make the STRS Fund solvent.
NOTE: The above PBI estimate is based on paying out an average of 10 million per year in bonuses over the next thirty years. The return is based on STRS actuarial return of 8%.
I would sincerely hope that STRS can objectively prove the above figures incorrect.
Shown below is a year by year calculation of the PBI estimate.