Nancy Hamant to STRS Board: Please make sure that the final Plan is just, fair and equitable
From Nancy Hamant, October 11, 2010
Subject: Proposed Plans for Unfunded Liability of STRS Pension
TO: STRS BOARD MEMBERS
FROM: Nancy B. Hamant
Date: October 11, 2010
SUBJECT: Proposed Plans for Unfunded Liability of STRS Pension
Dear STRS Board Member:
During this October STRS Board meeting, you will examine the current STRS Plan to reduce the unfunded liability of the STRS Pension, as well as consider the HPA proposal and other options to reduce the unfunded liability. Your decision and vote this week will deeply affect All STRS members, all 465,000 members. The five proposed changes (levers) to the pension amount to $9 Billion, which is a crucial, necessary and overwhelming burden for all STRS members to bear.
Please do everything in your power to ensure that the final Plan for Unfunded Pension Liability is equitable to each of the 465,000 members. Please question the actuarial figures provided to you, request the assumptions used to obtain the actuarial totals and know the fiscal impact of each of the five levers on each and every one of the STRS members. In the 2009 Plan, one lever--reduction of COLAs--amounts to 73% or $6.6 Billion of the projected $9 Billion. COLAs are only paid to retirees. Therefore current and future retirees will bear 73% of the burden. Hardly equitable! In addition, the COLA reductions are to start in 2011, after legislative action. Other levers in both the 2009 and the HPA Plans do not start immediately, but are delayed to 2014, 2015, or unbelievably until 2023. Hardly equitable!
Your vote on this matter is the most important one you will face as a fiduciary. It will impact each STRS member more than anything else you accomplish as a Board Member. Please make sure that the final Plan is just, fair and equitable. STRS members are counting on you!
Sincerely,
Nancy B. Hamant
Maineville, OH 45039
Subject: Proposed Plans for Unfunded Liability of STRS Pension
TO: STRS BOARD MEMBERS
FROM: Nancy B. Hamant
Date: October 11, 2010
SUBJECT: Proposed Plans for Unfunded Liability of STRS Pension
Dear STRS Board Member:
During this October STRS Board meeting, you will examine the current STRS Plan to reduce the unfunded liability of the STRS Pension, as well as consider the HPA proposal and other options to reduce the unfunded liability. Your decision and vote this week will deeply affect All STRS members, all 465,000 members. The five proposed changes (levers) to the pension amount to $9 Billion, which is a crucial, necessary and overwhelming burden for all STRS members to bear.
Please do everything in your power to ensure that the final Plan for Unfunded Pension Liability is equitable to each of the 465,000 members. Please question the actuarial figures provided to you, request the assumptions used to obtain the actuarial totals and know the fiscal impact of each of the five levers on each and every one of the STRS members. In the 2009 Plan, one lever--reduction of COLAs--amounts to 73% or $6.6 Billion of the projected $9 Billion. COLAs are only paid to retirees. Therefore current and future retirees will bear 73% of the burden. Hardly equitable! In addition, the COLA reductions are to start in 2011, after legislative action. Other levers in both the 2009 and the HPA Plans do not start immediately, but are delayed to 2014, 2015, or unbelievably until 2023. Hardly equitable!
Your vote on this matter is the most important one you will face as a fiduciary. It will impact each STRS member more than anything else you accomplish as a Board Member. Please make sure that the final Plan is just, fair and equitable. STRS members are counting on you!
Sincerely,
Nancy B. Hamant
Maineville, OH 45039
posted by Kathie Bracy at 3:26 PM
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