Friday, January 29, 2010

RH Jones: No need for STRS to take back any of our compensation

From RH Jones, January 29, 2010
Subject: January STRS, OEA Board of Directors, and SERS Meeting
To all:
The news media everywhere today, 01-29-2010, is announcing that the national economy is growing at 5.75%; the fastest since 2003! With this being true, the STRS investment staff is certainly growing our STRS funds mightily. Therefore, there should be NO need to even think about taking away one of STRS retirees deferred compensations: that of the flat 3%, nor any other take-backs.
Contrary to what others may think, I think that we do not necessarily need "bean counters" on the STRS board; but, instead, our board needs to have trenchant and compassion concern for their retired stakeholders. Where we need "bean counters" with the highest quality and intuitive skills is in the ranks of our investment staff!
Also, worthy of note, as depicted in Kathie Bracy's Blog, is the graph showing our STRS' rise in investment income. I believe that they are worthy of our praise and awards for this continual growth. I expect that they have learned a lesson and will not allow our investments to dive so far as they did in the years 2000 and 2008. There has been no end of negative criticism over those terrible losses. I expect it should not ever happen again. If it does, it will be, for the third time in recent years, too close together and the staff will be looked at with very critical eyes. Personally, I do not expect this to happen. Our STRS now enjoys a very fast and expensive computer system that will help keep the investment staff in quick control of any down "Bear" markets -- No excuses if it happens the third time. None.
Ladies and gentlemen, after all the gloom, this retiree is able to smile -- for the time being.
Robert H. Jones, retired teacher OH STRS member
Larry KehresMount Union Collge
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