Saturday, February 27, 2010

RH Jones: Letter to Senator Gary Cates

From RH Jones, February 27, 2010
Subject: Gee, Senator Gary, it seems as though you are upset over an education award....
Dear Senator Gary Cates:
If this news article is true, and I think it may be, I beg to disagree with you. Perhaps you are not informed that: if we in Ohio do not have a properly funded Public School District System, we will have to spend more on public prisons. Ohio's under-educated are having trouble finding work in this technological age, so they turn to crime. Rather than hiring teachers, Ohio will be hiring more prison guards, police officers, judges, and prosecutors .
Also, your figure of $700-million education funding that you stated was being cut by Governor Strickland is "off-base". In fact, it is just the opposite. If you figure the terrible costs of failing Charter Schools, one can assume, therefore, that you are the person playing gamesmanship during a political year, not Gov Strickland. Your approach has failed in the past; and, in the next election, will fail once again.
Sincerely,
Robert H. Jones, proud to live in Ohio District 41

Thursday, February 25, 2010

Senator Sue Morano to Duke Snider re: 3% COLA

From Senator Sue Morano, February 22, 2010
Subject: RE: 3% COLA
Dear Mr. Snider,
I would first like to apologize for my delayed response and thank you for contacting my office regarding this important issue.
As a member of the Ohio Retirement Study Council (ORSC) I understand the importance of a strong and vibrant public pension plan for all of Ohio’s state employees. Thousands of state employees depend on their pensions to be there for them when they retire after years of admirable public service. I understand the importance of the 3% COLA for thousands of retired teachers across the state and your idea to grandfather in current retirees is one being seriously discussed. I will continue to work with my colleagues in the Senate to protect and strengthen Ohio’s defined public pension plans.
Again, thank you for your email and please do not hesitate to contact my office in the future if you have any other questions or concerns.
Sincerely,
Sue Morano
State Senator
District 13
From "Duke" (Kenneth) Snider, February 20, 2010
Subject: 3% COLA
Senator Sue Morano,
I will make this short, because you are a very busy person. I have read about what you have done, and are doing. Thanks for being an asset to the Great State of Ohio. I am a retired educator and I hope all politicians understand how much we retirees depend on the 3% COLA each year to help us keep up with the skyrocketing cost of life's necessities. Please grandfather current retirees so we can have the 3% COLA.
Respectfully,
Kenneth "Duke" Snider, retired educator

Senator Keith Faber responds to retirees re: COLA

From: Senator Faber SD12@senate.state.oh.us, February 24, 2010
Subject: RE: COLA
Dear Mrs. Wampler,
Thank you for contacting my office in regards to your concerns with the State Teachers Retirement System of Ohio (STRS). It is always helpful to hear from my constituents in the district.
This particular situation that you bring up is very important to me and I am working hard to act in a way that will serve in the interest of all Ohioans. Due to the economic environment that we are facing, all retirement systems have been forced to reevaluate their future and the STRS is no exception. These varying factors, including market downturn, the accompanying recession, and the projected gradual economic recovery, have made it apparent that serious changes need to be made in order for STRS to maintain its statutory 30 year funding model. While STRS currently is able to pay dispense funds to its members, the future is not so certain. If no changes are made to the plan, STRS will not be able to pay future benefits. Acting now will save the state, and Ohioans, a substantial amount of money by not having to act later when the problem intensifies and is more immediate.
In attempts to help resolve the current issue facing STRS, they too have made drastic measures to save money. The operating budget for fiscal year 2010 represents a $10.9 million decrease, or 11%, from the previous year’s budget and is the lowest budget in four years. Further, STRS has instituted a salary freeze for its employees for FY 2010 as well as a headcount freeze. Consequently, STRS is at its lowest number of employees in a number of years. Even with all of theses changes within STRS, they need nearly a $9 billion reduction in liability and that liability comes from the members. This is why a lot of the proposed changes put forth affect the members.
Thank you again for contacting my office with your thoughts on this issue. If you have anymore questions or comments please do not hesitate to contact me again.
Sincerely,
Keith Faber
State Senator
12th District
From: Keith and Nan Wampler, February 23, 2010
Subject: COLA
Senator Faber,
Please do what you can to help us retired educators keep our 3% COLA. As health care costs and premiums increase, along with other costs of living, we are already falling behind inflation. Some of us may have stayed longer in the classroom if we had known that our income would be reduced. My husband spent 30 years in the classroom in central Ohio while I taught for 35 years.
If changes must be made in the future, perhaps current retirees could be grandfathered. If the COLA amount must be reduced perhaps you could give current teachers at least 5 years to plan ahead so they are not taken by surprise. Are there ways to pare the staff or budget within STRS? I don't understand why only retirees are selected as the way to save money.
Thank you for your concern,
Evelyn Wampler
M. Keith Wampler

Wednesday, February 24, 2010

Message to Retirees From Dennis Leone

From Dennis Leone, February 24, 2010
I write this to explain a decision I made that I am told is either upsetting or confusing to some retirees. While I very much appreciated the surprise gift I was given weeks after I left the STRS Board, and while the last thing I’d want to do is come across disrespectful or rude to retirees who were trying to do something nice, I made the decision to return the gift in its entirety. I feel that my service as a board member was that of a public servant, and while the gift was extended after I left the STRS Board, it is possible that others could draw inappropriate conclusions that it was solicited or expected on my part due to positions I took while serving as a board member. All things considered, I believe the wiser and more prudent thing for me to do was to completely return it. I hope retirees will respect my decision. I also am hopeful that if you try to put yourself in my position, you’ll be able to better understand the decision I chose to make. We’ve all seen people who try to make something out of nothing. I wish for retirees to know that I very much appreciated your friendly gesture after I left the STRS Board. Thank you.
Dennis Leone

Colorado pensioners see COLA cut and actives see contribution rate and minimum retirement age raised

From John Curry, February 24, 2010
Colorado governor OKs pension contribution hikes
By Timothy Inklebarger
Source: Pensions & Investments
Date: February 24, 2010
Colorado Gov. Bill Ritter signed a bill that raises contributions to the $35.4 billion Colorado Public Employees' Retirement Association, Denver.
The law aims to return COPERA to fully funded status within a 30-year amortization period, spokeswoman Katie Kaufmanis wrote in an e-mail. The pension fund had a 52% funded ratio as of Dec. 31, 2008, the most recent period for which funded status was calculated, Ms. Kaufmanis wrote.
The new law increases school district employers' contributions by 1.5% of payroll and school district employees' contributions by 2.5% of salary. Non-school district employers will contribute an additional 2% of payroll and state employees not working for school districts will contribute an extra 2% of salary.
The law also raises the retirement age to 60 from 55 for all state employees hired after Jan. 1, 2011, except school district employees.
It also increases the number of years a state employee must serve within the system to 30 from 25 before retiring. Those retiring earlier will receive reduced benefits.
Annual COLA increases also will decline to 2% from 3.5% in 2011.

Minutes of the Feb. 18, 2010 CORE Meeting

From CORE, February 24, 2010
On Feb. 18, 2010 at 12:10 p.m. President Dave Parshall called to order the Feb. CORE Meeting, which was held in the Sublett Room of the STRS Building in Columbus. Mary Ellen Angeletti moved to approve the January minutes; Kathie Bracy seconded. The eleven retirees in attendance then approved the minutes. Since Herman Fisher, treasurer, was unable to get to this meeting, there was no treasurer’s report this month.
President Dave mentioned that we need to put our position statement – our media letter about the STRS pension – on the CORE website. Mary Ellen moved to post the media letter; Marie Fetters seconded it. The motion passed.
The president led a brief discussion about the article in the Feb. 18th Columbus Dispatch pertaining to the state’s pension systems. Members also expressed concern about the anti-teacher sentiment letters that have appeared in various newspapers across the state.
Parshall informed the group that the meeting with Mr. Mike Nehf and a handful of CORE representatives went well. One outshoot of that meeting was a suggestion that Mr. Nehf presented related to helping the lower-pension recipients. He suggested that CORE members might come up with ideas for possible solutions that would keep that group from being harmed as we seek remedies for our pension’s future.
President Dave reiterated the fact that new officers and trustees should think about stepping forward by this fall. However, CORE might be ready to take a new direction. Having various members attend the regular STRS meetings and conducting a standard CORE meeting every few months may be options to pursue. Members are urged to contemplate these alternatives, as well as offer other points.
The next item of business was a discussion of the STRS Board’s upcoming election’s candidates. Liz Ebbing moved that CORE donate up to $2,000 to Jim Stoll’s campaign to help with mailing costs. Marie seconded the motion and the group approved it.
Dale Price, a current mathematics teacher in Toledo, introduced himself to the audience. Price is running for an active teacher spot on the STRS Board. In his opinion, the current board seems to have knee-jerk reactions to some of the financial problems; he contends that there needs to be more “thinking down the road.” He also stressed our moral requirement to all the educators who taught before us. He stated we have an obligation to somehow help them. Several ideas about our COLA were also discussed with Dale.
Before the meeting closed, CORE approved supporting Dale Price as a candidate. The meeting was adjourned at 1:20.
Respectfully submitted,
Marie M. Fetters
CORE secretary

Special STRS Board meeting scheduled for March 4 and 5, 2010

From STRS, February 24, 2010
PUBLIC MEETING NOTICE
March 4 & 5, 2010
A special meeting of the State Teachers Retirement Board will be held on Thursday, March 4, and Friday, March 5, 2010. The meeting will be held at the STRS Ohio offices in Columbus, Ohio. The business agenda will begin at 10 a.m. on Thursday, and 9:30 a.m. on Friday. The primary purpose of the meeting is a general educational program focusing on investments and financial matters with the Retirement Board's independent investment advisors (Callan Associates and Cliffwater). The Board may also consider other matters that require its attention.

Tuesday, February 23, 2010

AG Cordray comments on most recent ruling in a U.S. District Court

From John Curry, February 23, 2010
"Today’s decision validates and reinforces the core allegations of our lawsuit against Bank of America," said Cordray.
Cordray: Ohio Encouraged by Judge’s Ruling Against Bank of America
News Release from Ohio Attorney General's Office
2/22/2010
(COLUMBUS, Ohio) — Ohio Attorney General Richard Cordray said today that he is encouraged by a federal court’s order approving a $150 million settlement between Bank of America and the United States Securities and Exchange Commission.
Last September, Attorney General Cordray, in concert with five public pension funds, filed a shareholder class action lawsuit alleging securities violations based on many of the same alleged facts at issue in this enforcement action brought by the SEC. The suit filed by Cordray and other public pension funds is pending before a different judge in the U.S. District Court for the Southern District of New York.
“We welcome Judge Rakoff’s ruling today, which recognizes that Bank of America failed to adequately disclose to its shareholders material information related to the Bank’s acquisition of Merrill Lynch. Today’s decision validates and reinforces the core allegations of our lawsuit against Bank of America,” said Cordray.
Judge Rakoff was limited to hearing the facts before him as alleged by the SEC and indicated in today's ruling that even a $150 million penalty was “paltry” and “half-baked justice” given Bank of America’s substantial wrongdoing.
“Although the SEC did not, we sued not only Bank of America, but also top executives who we believe were personally engaged in violations of the securities laws. We will continue to aggressively pursue claims against Bank of America and other individual defendants on behalf of shareholders. We will not rest until Bank of America is held accountable for its wrongs, and until the rights of investors and retirees are vindicated,” Cordray added.
The lead plaintiffs group for the class action suit filed in September includes the State Teachers Retirement System of Ohio, the Ohio Public Employees Retirement System, and three other public pension funds.
For more information about the shareholder class action suit, please visit www.OhioAttorneyGeneral.gov/SecuritiesLitigationBriefing.
This lawsuit is one aspect of Attorney General Cordray’s aggressive pursuit to hold accountable those Wall Street institutions and executives who have violated laws and harmed Ohio investors, workers, retirees, and families. In addition to this case, Cordray has managed seven other such lawsuits, including those against AIG, Fannie Mae, Freddie Mac, Marsh, Merrill Lynch, the Ratings Agencies, and United Health Care. More than $2 billion has been recovered to-date in these suits.

Blade Editorial: Public pensions

From John Curry, February 23, 2010
"In the next few months, the General Assembly may consider measures to reform Ohio's public pension system. Lawmakers can craft politically viable adjustments today, such as making employees pay more into the system or raising the retirement age. Or they can ignore the wake-up call and wait for the inevitable meltdown to cut benefits, raise taxes, or slash government services."
(Or, will they simply kick the can down the road and do nothing due to this being an election year? - John)
Toledo Blade, February 23, 2010
Pension wake-up call
PUBLIC pension programs across the country are on a certain path to an unmanageable crisis if corrective action isn't taken immediately. How's that for a deafening wake-up call to state leaders?
As of 2008, according to a new report, states had $2.4 trillion on hand to pay for $3.4 trillion in promised pension, health-care, and other post-retirement benefits. The consequences of doing nothing to shore up public-sector retirement benefits, warns the Pew Center on the States, are a $1 trillion funding shortfall and even more debilitating costs if state-administered pension plans in all 50 states don't address the gap now.
The survey showed Ohio's five public-pension programs in better shape than most, but they also face challenges in meeting the obligations to 1.1 million active and retired members and beneficiaries. For years, the report said, policymakers have failed to fund their state pension systems sufficiently while expanding benefits and relying on overly optimistic assumptions about investment returns.
Then came huge investment losses in late 2008. The stock market downturn likely made the gap between what states put away to cover retirements and what they need to cover long-term obligations much wider. Unless they soon take steps to rein in the annual costs of managing pensions, the exploding financial burden of paying for the future retirements and health care of public employees will fall to taxpayers.
A recent investigation by The Blade and other Ohio newspapers of state pension policies concluded that the taxpayer tab to cover pension expenses for government retirees could top $5 billion a year by the middle of the decade. Many private-sector workers in Ohio won't be collecting similarly generous pensions or other benefits when they retire.
In the next few months, the General Assembly may consider measures to reform Ohio's public pension system. Lawmakers can craft politically viable adjustments today, such as making employees pay more into the system or raising the retirement age. Or they can ignore the wake-up call and wait for the inevitable meltdown to cut benefits, raise taxes, or slash government services.

Monday, February 22, 2010

STRS report on February, 2010 Board meeting

From STRS, February 22, 2010
Last week, the State Teachers Retirement Board held its monthly meeting. Following the regularly scheduled meetings, a report titled "Board News" is posted on the STRS Ohio Web site, as well as mailed to a number of members and education organization representatives who have requested it. As a member of STRS Ohio with an e-mail address on file, you will also receive this report each month. The February report follows.
FEBRUARY BOARD NEWS
PENSION LEGISLATION SPONSORSHIP WILL BE BIPARTISAN The five Ohio retirement systems, including STRS Ohio, are still waiting for the Legislative Service Commission to finish its work in drafting the legislation designed to keep the systems financially strong and sustainable for all current and future public employees. During the February meeting of the State Teachers Retirement Board, Executive Director Michael Nehf reported that STRS Ohio has learned that the bill sponsorship will be bipartisan. House Assistant Minority Leader Louis Blessing (R-Cincinnati) has agreed to co-sponsor the legislation with Ohio Retirement Study Council Chair Rep. Todd Book (D-Portsmouth). It is anticipated that once a bill is introduced, hearings may occur this spring; however, voting on a bill is not expected until after the November election.
On Capitol Hill in Washington, D.C., the focus of legislators and the president appears to be on jobs; financial market regulation and reform; and the growing federal deficit and debt reduction measures. Health care is also on the list; however, congressional staff members are giving passage of health care reform a 50/50 chance this year. Additional information about discussions at the federal level can be found in this February's issue of STRS Ohio's Legislative News, which is posted on the STRS Ohio Web site. (https://www.strsoh.org/quicklinks/legislative.html)
HPA PRESENTS MODIFIED PACKAGE OF PENSION BENEFIT CHANGES At the February board meeting, the Healthcare & Pension Advocates for STRS (HPA) presented an alternative proposal for pension benefit changes to the Retirement Board for its consideration. The HPA proposal does not call for any changes to the proposed member and employer contribution increases nor to the benefit formula change contained in the plan adopted by the board on Sept. 1, 2009.
However, the HPA proposal does call for a phased approach to increasing the number of years of service required for full retirement benefits. In the HPA proposal, the change to 35 years from 30 of required service would be phased in, in two-year increments beginning in 2015 (i.e., 30 years until Aug. 1, 2015; 31 years from August 2015 through July 31, 2017; 32 years from August 2017 through July 31, 2019; 33 years from August 2019 through July 31, 2021; 34 years from August 2021 through July 31, 2023; and 35 years from August 2023 and beyond). Members could also retire early with 30 years of service, but with an actuarial reduction of their benefits.
HPA is also recommending that there be no tiering of the cost-of-living adjustment (COLA). In the HPA proposal, current retirees would receive a 2% COLA, beginning on July 1, 2011. New retirees after that date would also receive a 2% COLA, but it would be deferred for 36 months or until age 60, whichever comes later.
Finally, the HPA proposal would prefer legislation that grants authority to the Retirement Board to adjust the final average salary at three, four or five years, based on the funding status of the system.
In presenting its proposal, the HPA also expressed its commitment to the STRS Ohio Health Care Program by recommending that a contribution to the Health Care Stabilization Fund be set at no less than 1% of employer payroll.
At the March board meeting, STRS Ohio staff will present a report to the board showing the impact of the HPA's proposed changes on the solvency of the pension fund. It was noted that any or all of HPA's changes could be included in the pension legislation through amendments to the bill.
PROJECTED LIFE OF THE HEALTH CARE FUND INCREASES SLIGHTLY, BUT LONG-TERM CHANGES STILL NEEDED A positive return on fund assets, as well as the addition of a Medicare Advantage program and other plan changes, helped to slightly lengthen the solvency period for the Health Care Stabilization Fund as of Jan. 1, 2010. The results of the annual actuarial valuation of the fund show that the projected life of the STRS Ohio Health Care Program now extends through 2021. This reflects an increase of three years from the 2009 valuation.
Costs for the STRS Ohio Health Care Program are paid out of the Health Care Stabilization Fund. Currently, monies for the fund come from premiums charged to STRS Ohio retirees and their dependents who are enrolled in the program, 1% of payroll from employer contributions, Medicare Part D subsidies and investment earnings on these funds. Though the balance in the fund stood at almost $3 billion on Jan. 1, 2010, next year the fund principal will be tapped to cover the shortfall in paying health care costs. Reliance on the principal rapidly depletes the health care fund, leaving only the 1% employer contribution, enrollee premiums and Medicare Part D subsidy to sustain the fund. Without significant changes in premiums, program eligibility or plan design, the program cannot survive in the long term. In the coming months, STRS Ohio staff will present options for the health care program for the board's consideration.
RETIREMENTS APPROVED The Retirement Board approved 175 active members and 125 inactive members for service retirement.
OTHER STRS OHIO NEWS
STRS OHIO RECEIVES STATE AUDITOR'S AWARD STRS Ohio has received the "Making Your Tax Dollars Work" award from the Auditor of State's Office for the second consecutive year. STRS Ohio received the award for the quality of its financial reporting and the absence of audit issues. Less than 5% of the 5,500 entities that the Auditor of State's Office audits each year receive this award.

Sunday, February 21, 2010

STRS COLA...a retiree writes to a member of the ORSC re. grandfathering the 3% COLA

From John Curry, February 21, 2010
Note from John...writing a member of the ORSC and requesting that current retirees be grandfathered from any COLA cut is, in my opinion, a pretty good idea. Who do you write to? Well, a list of those 3 Reps. and 3 Senators on the Ohio Retirement Study Council follows the letters below. The more letters they get asking for grandfathering.... the better!!!!!!!!!! John
Senator Sue Morano to Barbara Armitage, February 19, 2010
Subject: RE: STRS COLA
Dear Mrs. Armitage,
I would first like to apologize for my delayed response and thank you for contacting my office regarding this important issue.
As a member of the Ohio Retirement Study Council (ORSC) I understand the importance of a strong and vibrant public pension plan for all of Ohio ’s state employees. Thousands of state employees depend on their pensions to be there for them when they retire after years of admirable public service. I understand the importance of the 3% COLA for thousands of retired teachers across the state and your idea to grandfather in current retirees is one being discussed. I will continue to work with my colleagues in the Senate to protect and strengthen Ohio ’s defined public pension plans.
Again, thank you for your email and please do not hesitate to contact my office in the future if you have any other questions or concerns.
Sincerely,
Sue Morano
State Senator
District 13
.
From Barbara Armitage, February 14, 2010
Subject: STRS COLA
Dear Senator Morano:
Please do what you can to help us retired educators keep our 3% COLA. As health care costs and premiums increase, as do food prices, we are already falling behind inflation. Some of us may have stayed longer in the classroom if we had known that our income would be reduced. I spent 30 years in the classroom in central Ohio .
If changes must be made in the future, perhaps current retirees could be grandfathered. If the COLA amount must be reduced perhaps you could give current teachers at least 5 years to plan ahead so they are not taken by surprise. Are there ways to pare the staff or budget within STRS? I don't understand why only retirees are selected as the way to save money.
Thank you for your concern,
Barbara Armitage
Columbus, OH
Senators:
District 29
Kirk Schuring (R)
Senator
Senate Building
1 Capitol Square, 1st Floor
Columbus, OH 43215
Phone: (614) 466-0626
Email: SD29@senate.state.oh.us
District 13
Sue Morano (D)
Senator
Senate Building
1 Capitol Square, Ground Floor
Columbus, OH 43215
Phone: (614) 644-7613
Email: SD13@maild.sen.state.oh.us
District 12
Keith Faber (R)
Majority Floor Leader
Senate Building
1 Capitol Square, 1st Floor
Columbus, OH 43215
Phone: (614) 466-7584
Email: SD12@senate.state.oh.us
Representatives:
Todd Book
District: 89
Term: 4th
Term Limit: Not eligible to run for another two-year term
Address:
77 S. High St
11th Floor Columbus, OH 43215-6111
Phone: (614) 466-2124
Fax: (614) 719-6989
Email: district89@ohr.state.oh.us
Dan Dodd
District: 91 Term: 2nd
Term Limit: Eligible to run for another two-year term
Address:
77 S. High St
11th Floor
Columbus, OH 43215-6111
Phone: (614) 466-2500
Fax: (614) 719-6991
Email: district91@ohr.state.oh.us
Lynn Wachtmann
District: 75 Term: 2nd
Term Limit: Eligible to run for another two-year term
Address:
77 S. High St
10th Floor
Columbus, OH 43215-6111
Phone: (614) 466-3760
Fax: (614) 719-3975
Email: district75@ohr.state.oh.us
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