STRS Flashback...back to the time when they trashed STRS retirees' spouses and talked about that yet-to-be-discovered "dedicated funding stream!"

Sound familiar?

From John Curry, March 14, 2010

Benefit changes draw questions

Findlay Courier, Feb. 19, 2004
By DENISE GRANT
STAFF WRITER

With a long list of questions in hand, about 100 retired educators from Findlay and Hancock County attended a luncheon Wednesday to hear firsthand how their pension fund is being managed.

The Hancock County Retired Teachers Association hosted the luncheon, featuring Gary Russell, STRS Director of Member Services, as the guest speaker.

Association members began mobilizing this fall when Ohio's retired teachers learned that the fund had paid more than $16 million in bonuses to employees since 2000. More than $200,000 was spent on trips for STRS board members and nearly $900,000 was spent on artwork for offices -- all while the pension fund was shrinking.

The controversy forced the resignation of then STRS director Herb Dyer.

Since taking over at STRS, interim executive director Damon Asbury has announced several changes in how the fund will be managed in the future. The changes include mandatory financial disclosure for senior STRS staff members, along with staff reductions, budget cuts, independent audits, among many others. On Wednesday, much of the discussion focused on health care benefits.

Russell assured the group that the STRS pension fund is in good standing. Most of the concern and uncertainty centers upon health care benefits, not pension payments.

Russell said STRS increased members' co-pays on prescription medication and dropped spousal benefits to keep the benefit fund afloat. Without the changes, the rising cost of medical care and insurance would have bankrupted the fund by 2006.

Asked if the spousal benefit is likely to return, Russell said no.

Improving and increasing the medical benefits offered through pension fund will require a "dedicated funding stream," he said.

STRS is unwilling to divert more money to medical benefits. He said the pension fund's primary obligation is providing its membership with a pension. The medical benefits are actually an option that was first allowed by the General Assembly in the 1970s.

Russell said the additional money will have to come from one of three sources: employees, employers or the taxpayers.

Employees don't want to pay more. School boards don't want to pay more. And, Russell said, editorial boards from across the state have advised STRS that "there isn't much public empathy for a system that allows for retirement at age 50."

Still, Russell said officials at STRS know that retirement without good health benefits isn't much of a retirement. However, for now, there are no easy answers.

Russell also updated Wednesday's crowd on the status of two bills currently being debated by Ohio lawmakers aimed at overhauling the management of STRS, and the state's four other multibillon-dollar retirement funds.

STRS is opposed to two provisions contained in the bills.

In House Bill 227, the Legislature is attempting to mandate that 70 percent of invested trades and 50 percent of externally managed assets from the pension funds go to managers with a significant presence in Ohio.