RH Jones: How is the COLA cut going to save $9 billion?

From RH Jones, May 13, 2010
Subject: Re: STRS handout (3 pages) from Laura Ecklar today

To John, Laura Ecklar and all:

Concerning page 2 of STRS official Laura Ecklar's handout, I would like some explanation from her as to where the STRS employees come up with the astounding $9 billion figure that they claim the simple COLA cut would bring the financial health of pension fund down from infinity to 34.4 years. By the STRS combining retirees who have retired at much less income level than that of current and future retirees seems to me to be unfair to us older retirees.

Also, concerning HC/Rx funding of 1% of the employers contribution mentioned, please remember that the fund was 4%, until cut down.

RHJones, a OH STRS retired teacher member