Jim N. Reed: STRS was warned

July 25, 2010
STRS Pension Dilemma

As a concerned member of STRS I was not surprised to read in a recent "E-G" some of the hold-your-nose medicine my retirement system and its farm team OEA have offered to "fix" the ailing system.

In the "Proposed Changes" heavy cuts are on the backs of educators--- prospective, active and retired. Where is the belt-tightening within STRS and OEA? Ever been to their office buildings or checked the salaries we pay them as our employees?

In defending the lack of vision and preparation for the expansion of qualified recipients of pension funds, one official exclaims, "We never expected someone to retire at 65 and live another 50 years." Does 30-35 years in the classroom not make a respectable career? Is it socially unacceptable to survive into retirement age and expect the security that had been promised? And how many 115-year-olds are in your address book?

OEA VP Bill Leibensperger is typical of an out-of-touch mentality as he proposes to fix the financial problems at STRS on the backs of its members... "We have to recognize the hard facts that real changes need to be made to preserve the system. In STRS we will have to work longer, pay more, and get less."

Most of the educators in the "we" column Leibensperger claims to represent are not, and never will be, drawing a salary of $149,000 annually (his VP salary we pay each year which is only one of over 100 OEA salaries to exceed $100,000).

Update:The proposed increases in "contribution rates" (2-1/2% for members and 2-1/2% for employers) have recently been withdrawn by STRS. The promised healthcare fund will continue to shrink with 11 years of funding remaining.

Visionaries like Dennis Leone and John Lazares warned the STRS administration and board beginning in 2003 changes were needed. Their warnings have arrived.

Jim N. Reed
Baltimore, Ohio