More COLA discussion: Tom Curtis, RH Jones

From RH Jones, August 29, 2010
Subject: Our simple COLA and Fw: 082910 Re Rep Todd Snitchler, Re Questions From A STRS Retiree

To Tom and all:

First, everyone please be aware that our OH STRS simply calculated 3% COLA does not keep us up with the cost-of-living. It takes a compounded COLA, based on the federal government's standard, and even it is faulty.

For the elderly educators, in particular, the cost-of-dying and trying to stay alive with our limited HC/Rx adjustment far exceeds our modest COLA. Any negative change in the State of Ohio fiscal policy toward old age retired teachers could led to thousands of us having to seek handouts. And this negative fiscal abuse of the elderly would be even more disgraceful for us college educated professional teachers. The young would, then, most certainly avoid teaching in Ohio.

Any remedy to the shortfall in STRS 30-year funding standard should not continue to be covered by cutting into the retired teacher. The STRS cut down of the 4% HC/Rx fund down to 1% has, as a consequence, cut us deeply already. We have done our part, and will probably never live long enough to see it restored -- most of us do not even have 10-years.

Secondly, although I am not a women, I am a man in profession dominated by women. I am aware that women do have great political power and are not afraid to use it. In their proud history of fighting strongly to win their right to vote. And being a powerful force in conquering the American frontier, they will not continue to allow further cuts. I am sure of that. As they have fought bravely, side-by-side with men in Iraq and Afghanistan wars. Men and women in power in our Ohio government, need to be aware that today's women are just as strong, or even stronger, than their great-grandmothers, grandmothers, and mothers. For to ignore that fact is to be done so at your own political risk. It is best for all, if not to improve it, just to leave the retired teacher COLA alone.

Thirdly, it is unfortunate that the STRS Board members may have been exposed to faulty cash-flow accounting. Like all accounting, sometimes it can be arbitrary and misleading. For instance at the last board meeting, it was mentioned that the investment staff had gained over 12% in the last fiscal quarter's investments; That is plausible, but another state says they gained 19%. Money awards from the recent litigation by Attny Gen Cordray could be part of that STRS 12% investment gain. After all, this is money is that which would go into the same fund (I am not saying that is true, but only using it as an example). Manipulating numbers is how Enron Corporation fell. It is simply best just to let the COLA alone and gain seed money from other sources rather than from retired teachers.

Education is the way out of any economic slump that Ohio and the nation the nation may now be experiencing. This has been the case in the past, and this is the case today.

RHJones, retired OH STRS teacher member

From Tom Curtis, August 29, 2010
Subject: 082910 Re Rep Todd Snitchler, Re Questions From A STRS Retiree

(See previous thread here.)

Michael,

Thank you for your response on behalf of Rep. Snitchler. However, when personally speaking to Rep. Snitchler on Friday, I was of the understanding that he "did not" support any cut in our 3% COLA.

A 3% COLA was promised to not only me, but thousands of other retirees in 2002 and must be honored, in my opinion. Other state retirees are currently suing their state for breach of that promise and well should.

Continually placing the cost of the shortfall of the STRS onto the backs of it's retirees is wrong. We are tired of this nonsense. We are fighting back with a vengeance. We will attempt to remove from office, all of those legislators that do not support that promise. If not this election, then the next one for sure.

Michael, your statements indicate that Rep. Snitchler is in fact "not" in agreement with a no cut policy. If this is going to be a wait and see proposition on his part, then I will advise retirees in Stark Co. to vote for another candidate in November. Either he "does" or "does not" support the promise the legislature made to us. If he does not, then he needs to be replaced. He cannot have it both ways, with a "we will wait and see" approach.

The STRS retirees did not cause the shortfall in the unfunded liability of the STRS, Wall Street and the large banks caused it, along with poor choices the STRS investment department has made during the downfall of the markets.

Retirees must receive that 3% COLA promise to keep up with inflation, as was mandated by the legislature in 2002. We have no means of changing what we were promised. Actives still have time to make allowances to their future income.

Sincerely, Thomas Curtis
STRS Retiree